Setting the right price is critical to a successful sale as it will help ensure your home sells for the most amount of money in the shortest amount of time.
You only get one chance to make a great first impression, so it’s important to price your home correctly when it first hits the market. Here are a few pricing strategies to keep in mind:
Comp & Circumstance
The best way to determine a home’s asking price is to compare similar homes in nearby areas that have recently sold, while also taking past, present and future market trends into account.
Market Matters
You may have your own opinion of what your home’s worth but it’s important to be unbiased and realistic. At the end of the day, it’s the market that determines your home’s true value.
Buzz Kill
There’s always a huge buzz when a new property hits the market, but if the price is too high, it’ll quickly become stale. Once that happens, buyers lose the incentive to make a swift, strong offer.
Stigma Stymie
If a home sits on the market too long, it’ll start to develop a stigma. We’ve all walked past a home that’s been on the market for ages and wondered, “What’s wrong with it?”
Competitive Edge
Overpricing your home benefits your competition, as buyers will view similar, less expensive homes in your area as much better deals.
Lowball Anxiety
You may be tempted to overprice your home, thinking buyers will still make offers, but many will shy away from making low offers for fear of offending the seller.
Don’t Sit Around
Having your property sit on the market is very inconvenient, as you’ll constantly have to keep it in a show-ready state, which can be extremely stressful, not to mention exhausting.
Costly Carryover
Carrying costs such as mortgage interest, insurance, taxes and utilities can quickly add up if you get stuck carrying two homes at once.
Pricing a home is part art and part science. Market factors such as the economy, time of year and interest rates can all make a huge difference. Balancing these factors while keeping the buyer’s perspective in mind is essential for setting the right price.
Your home only gets one chance to make a great first impression, so it’s important to enlist the services of a highly qualified real estate agent to help you get things done properly from start to finish.
