When you decide to sell your home, it can be tempting to select an asking price based on what you want for your home. Remember that “the market” dictates the price not me and not you. And overpricing can actually cause your home to sell for less than market value or you will waste valuable time and expenses over an unnecessarily long listing period.
Pricing is one of the most crucial decisions when selling any product. Your home is no different. The market price is determined by what buyers in that market are willing to pay for the product. Whether you are selling a toothbrush or a Lamborghini, the process is the same. You need to determine who the buyers are and what they are currently willing to spend on a similar or comparable product.
In real estate, it is very easy to let our emotions get in the way. It can be difficult to view the process objectively when it is your personal home. As challenging as it may be it is imperative to view the market data objectively and see the house through buyers eyes.
There are a lot of reasons to price your home right from the very start of the listing.
Here are my top 5 reasons:
- It will sell quicker if you price it right.
- A home that is priced right WILL sell. The quicker you sell, the quicker you’re on to bigger and better things.
- Less Showings!
- Showings are inconvenient if you live in the home. When your price the listing right, it will sell quicker and that means less rushing around to clean the house every few hours.
- Less open houses!
- Open houses are necessary to get your listing added exposure. But no one really wants a bunch of strangers wondering around in their house.
- You won’t have to reduce the price.
- If you overprice your listing, you will inevitably have to lower the price. Buyers have a tendency to think that there must be wrong with a house if it sits on the market for a long time or has a few price reductions.
- And finally and most importantly – the first 2 weeks of the listing are when you are most likely to get the highest offer for your home anyways!
- This is when the listing is new to the market and every buyer who has been looking for a property sees your new listing. That competition may even elicit more than one offer. If your property is on the market beyond those first few weeks, it is probably overpriced. That is the market as a whole telling you we think the price isn’t right.
A bonus 6th reason: As of today, we are in a sellers’ market. That means there’s less supply than demand. And as a seller that does give you some leverage in negotiating. But just because we’re in a sellers’ market, doesn’t mean you can get whatever you want for your house. The buyers will still decide to offer on another home if they feel it’s not priced in line with similar sales in the area. If you have to reduce the price you lose some of that urgency a buyer feels at the beginning of the listing. That in turn gives them the power in the negotiation process.
If you are thinking of selling, call us today to get a fair market evaluation of your home. 407-494-2820 or email me at kathryn@ThinkLiveBe.com