Deciding where to price your home is a more difficult decision than most sellers think, and it is not one that you should take lightly. If you price you home too high it will probably stay on the market longer than it should. Some sellers think this is okay because they are in no rush to sell their home. Everyone wants to sell their home for the most that they can. However, the best price is not solely determined by the initial list price.
Many studies have shown homes that sit on the market often sell for less. In today’s market, a buyer can easily see price changes and how many days your home has been on the market. Homes that sit on the market too long are less attractive because of buyer perception. There must be something wrong with it. They must be asking too much. It is simply human nature to question things that others pass up on.
The longer your home sits on the market, the lower the chances of you getting a respectable offer. Buyer activity usually peaks within the first 60 days, and with no change tends to further diminish every 30 days thereafter. Most experts agree for the best price, you should try to price your home to sell within the first 100 days.
It is also important to remember buyers do not have the same emotional attachment to your home as you do. They are indifferent to any sentimental value you have for your home. Some sellers fall into the trap of overestimating the value of their property because of how they feel about it. A professional can help you see your home through the eyes of a potential buyer and help you set a fair and objective price for your home.
You also need accurate data. You should be very wary of some of the popular national real estate websites. The information they provide is often inaccurate. Their valuations are often based on what homes in the area list for. They also use comparable properties that a licensed appraiser or real estate agent might negate. You need verified data from the most comparable homes to the one you want to sell.
Your pricing decision should also be based on what comparable homes actually sold for. Basing you price solely on what other sellers are asking can set an unrealistic expectation. It also can noticeably diminish your marketing efforts. The old adage is the home that sells for the best price is the one that gets shown regularly.
One last thing to consider is the strategy for defending your price. Does your home or property offer additional value in comparison to other homes on the market? Is your home priced well enough to give the perception of continued buyer traffic? Your agent can offer guidance on what strategies might best suit your property and needs.
If you have questions about pricing or would like to learn more about how to maximize the proceeds from the sale of your home, please contact us.