Pricing Your Home Effectively
The absolute most important strategy in selling your home is setting the correct list price. Whether you own a luxury or starter home. Whether your home is well maintained or a fixer upper. When the list price is set correctly the first time and the proper marketing is in place, your home is 90% SOLD!
The First Four Weeks: Statistics by the National Association of Realtors show that the first four weeks of the listing period are critical. This is the time frame in which the existing pool of active buyers are waiting for a new listing to come on the market. They have already seen many or all homes that match their criteria and are searching for a competitively priced home that will “wow” them. For this reason not only is pricing key, but also that your home be in good condition and ready to be shown, whenever possible, prior to putting it on the market.
Setting Your List Price Too Low: No seller wants to leave money on the table. Through utilizing a Cost Market Analysis and our knowledge of the current market buying trends, we can help you navigate the waters between over and under pricing.
Pitfalls of Over Pricing: Statistics show that over priced homes sell for less than homes which are priced correctly to begin with. Buyers look for value when comparing your home to the multiple others they have seen, no matter whether it is a buyer or seller market. Homes that are over priced are often overlooked and may remain on the market for longer than average, which often prompts the question from a buyer to his or her Buyer's Agent, "why hasn't this home sold"? Buyer’s often inquire how long a home has been on the market. They view long standing listings as being “more negotiable” and often scrutinize them more for fear something may be physically wrong that would cause resale concerns for them in the future. This can result in a low offer. If a home remains on the market too long it can become stigmatized by buyers and Realtor's alike. And this typically results in one or more price reductions to get the home sold, whereas had it been priced effectively to begin with this would most likely not have occurred.
Determine Your Time Frame: If you must sell quicker than the market is moving, pricing your home less than your competition is a strategy worthy of consideration.
Benefits of Pricing Your Home Effectively the First Time
- Your home is 90% SOLD with the right list price and proper marketing.
- More buyers will desire to see your home.
- Other Realtors will put forth more effort to show well priced homes to their clients.
- The right list price often creates an urgency in a buyer to present an offer before someone else does.
- A faster closing means a savings of carrying costs for you.
- The ability to move forward with your life is often very valuable if you need to sell quickly or are a relocation client.
- Avoid the downward spiral of price reductions that often occur with over priced homes.
- Anita Davis -