Buyers may resist inspecting your home because they can find better values elsewhere. Just think – overpriced houses tend to sell the competition first. Potential buyers who can’t afford the price don’t bother to look–or to make offers.
Accurately pricing your home is one of the most important tasks once you’ve decided to sell. When you price too high, your home sits. When you price too low, you may be leaving money on the table.
You need to find that “sweet spot”. We can help you determine what the market is saying your home is worth and how to find the sweet spot.
Who determines market value?
The short answer is: The Real Estate Market
Appraisers and real estate agents rely on the prices that similar properties in the same area sold for to determine the fair market value of another property.
These statistics show what ready, willing and able buyers are willing to pay for homes and what sellers are typically willing to accept for their home. This is the market dictating the value of your home.
Remember that real estate is hyper-local. You can’t compare even the exact same home if it’s in a different town, school district, etc.
Pricing too high
Lots of sellers believe they need to price on the high side to allow for negotiations but this is not true.
Today’s buyers and agents are market savvy with the Internet being full of public information and the tools and resources available to agents.
Statistics show that when pricing your home too high, it can sit on the market. There are few showings and feedback very often refers to price.
Properties like these become stale. When the “days on market” continue to climb with no offers, agents tend not to show the home. Worse yet, buyers think there is something major wrong with the home so they avoid it.
Pricing high to leave room for negotiation is simply not a good strategy if you want your home to sell quickly and for the most money.
The ‘sweet spot’ in pricing
When your agent gathers the data of comparable home sales, you will likely see a range that the market is saying homes like yours have sold for. Pricing within that range means that you have the best opportunity to sell your home quickly and for more money! Why?
Because of the perceived value! When a buyer sees that the condition of your home is great and you’ve priced it in line with the market, they make offers.
Pricing in the sweet spot typically results in multiple offers and above asking price offers! That’s what you want – people competing over who will buy your home!
Remember, your home is full of personal memories which makes your perceived value of it high. However, a buyer sees brick, stone and vinyl – a commodity to be gotten at the best price. There is a middle ground – “the sweet spot”.
When pricing well for the condition (updates, maintenance, repairs) and listening to what the market is saying, you create value that buyers can see. They respond by offering at or above listing price and sometimes you’ll get multiple offers which drives the price up!