Coming up with the right price when selling your home is a precarious balancing act. You want to ask for as much as possible and you also don’t want to cheat yourself with a price that’s lower than your home’s worth.
The “right” price is one that’s in line with what similar homes are selling for in your market. Your real estate professional can help you evaluate the market and resist the temptation to overprice your home — or give in to your fears and underprice it. Always listen to what your agent says: You’re better off getting the price right the first time around.
Here are three reasons to price your home correctly from the start and strategies for coming up with the ideal dollar amount:
You can attract more buyers.
Some sellers may be tempted to ask for more than market value — even if they’re willing to accept a lower offer just to see if there are any takers at the larger number. But this strategy can backfire if sellers price their home out of range of potential buyers.
If you over price your home from the start, you may reduce the number of qualified and serious buyers who may be searching for a home just under your inflated price.
It’s better to price your property right from the start to maximize the number of qualified buyers.
You will sell your home faster, for a higher price
In a hot market with many buyers, a fairly priced home could receive multiple offers because people recognize it’s a good deal. There’s a good chance that it may start a bidding war that drives the final offer above your asking price.
But an overpriced home could scare away some of those buyers, who may think that they’re dealing with an unreasonable seller. You may be willing to sell your house for less, but there’s a good chance that the buyer may not even bother to make an offer if the home’s overpriced from the start.
Buyers will have more confidence in your property
If you price your house high and then reduce it, a potential buyer may wonder if something is wrong with your property.
When your home is priced according to the market and similar to comparable sales in your neighborhood, a buyer may feel better about the transaction.
The buyer may reason that if you’ve done your homework on pricing, you’ve also done your homework on making sure the home is in good condition.
According to the National Association of Realtors, if a home doesn’t sell within 30 days, it’s a good indication that it’s not priced right. In addition, research suggests the longer a house stays on the market, the lower its final selling price will be.
Please feel free to call THE VIRANI SALES TEAM at 604.695.1000 if you would like further explanation on any of our blog topics, or if you have any real estate questions at all.