Pricing Your Home For Sale
Statistics show that you have the best chance of selling your home within the first few weeks that it is listed, so it is important to price your home just right. Most buyers begin their house hunting online and they are able to see what the houses nearby are selling for.
1) Price Positioning. Price positioning plays a huge factor when marketing your home for sale. A good marketing plan should already have a pre-planned, 2-3 step pricing strategy should your home not get enough activity within the first few weeks. Having a strategy ahead of time will allow you to move quicker which should reduce your market time.
Search engines online are usually set up for people to search within $25k increments. So people will search up to $100k, $125k, $150k, $175k, etc. When you initially set your list price, you will want to take this into consideration.
Each time you make a price change and it happens to fall into that $25k increment you will then target an entire new pool of buyers who were not seeing your property when it was initially listed.
An example would be that you were listed at $104,900 and you make a price drop to $100,000. A buyer looking in the $75-$100k range will now find your listing online (as well as someone looking in the $100-$125k range).
2) Overpricing your home. When you first list your home, the ball is in your court. You have a new listing that hopefully everybody wants.
Many homeowners think that their home is worth a lot more than what it actually is. This is because there is a stronger emotional attachment to the home. As much as I hate to say it, at the end of the day, your family memories will not add value to your home.
Pricing your home too high can cause your home to sit on the market. After so many days of little to no activity, the ball slowly starts to fall into the buyers court. The buyer will feel that you will be more willing to negotiate the sales price and other things because of how long your home has been sitting on the market.
You can see in the diagram above what overpricing your home can do. It will reduce the amount of activity on your home significantly.
Having a detailed Comparative Market Analysis (CMA) prepared for you ahead of time can help set your list price.
Want to know what your home could sell for?