PRICING YOUR HOME FOR SALE
The single most important decision you will make with your Real Estate Professional is determining the right asking price for your home. Although it is clearly your goal to secure the highest possible value for your home, it is also imperative to resist the desire to inflate the asking price for your home, even early on in the listing.
Entering the market at a proper price will increase the likelihood of a quicker and ultimately, more profitable selling experience. Benefits of honest and appropriate pricing include the following:
The Benefits of Pricing Right
- Your home sells faster, because it is exposed to more qualified buyers.
- Less Inconvenience for you and your family.
- Your home doesn't lose its "marketability." Better response from advertising, sign calls.
- Real Estate Professionals will be enthusiastic about presenting your home to buyers.
- A well-priced home can generate competing offers.
- The closer to market value, the higher the offers.
- Avoids being "shopworn."
- MORE money to the seller in the end
The Best Offers Come First
When home buyers begin to search for properties and to evaluate the market, a number of factors will quickly become apparent about your listing. Unquestionably, one area of concern will be how closely your asking price relates to market value.
Additionally though, the length of time your home has spent on the market will be a factor. The longer your listing has been up, the less you are likely to receive for it. The property risks becoming a "Stale Listing."
Dangers of Overpricing Your Home
One may tend to rationalize that there is no harm in entering the market at an inflated price, just to give it a try. "We can always come down," you might imagine.
In Fact, this approach is not at all advisable. Once your listing has floundered on the market at a high price, it will appear stale. Buyers will assume deficiencies may exist in the home, and in the end, you may find trouble retrieving even market value.
One might also suggest that it may well be worth the gamble to give a higher price a shot only at the very beginning, before returning closer to market value.
This rationale of "Couldn't we just try it for a couple of weeks?" is quite similarly misguided. Interest in your listing will be highest when it first appears on the market, and showing activity will peak in the early stages. This then, is precisely when you should have the "right price!"