Pricing your home is an art not a science. Achieving the optimal price is the result of both objective research into similar properties and instinct in determining how much a buyer will be willing to pay for your home. The correct price will attract showings, which will generate offers.
The unfortunate fact is that price is the number one factor that most homebuyers use to determine which homes they want to view. It’s also important to remember that although you and your Realtor® set the asking price, the selling price is determined by the buyer.
The Correct Price Will:
* Result in a quicker sale, with less inconvenience to the seller
* Expose the property to more buyers
* Increase Realtor® response
* Generate more ad and Internet inquiries
* Prevent your listing from getting stale or shop worn
* Typically homes that sell more quickly, sell closer to or sometimes over asking price.
Some Common Reasons for Overpricing:
* Over improved property
* Original purchase price too high
* Desire negotiating room
* Most of the activity on your home will occur in the first few weeks. Pricing a home properly creates immediate urgency in the minds of buyers and real estate agents.
* There is a pool of buyers who have seen most available homes in their price range and are now only waiting for new listings or price reductions. A buyer who has been waiting, may fail to see your home if it is priced too high.
* Sometimes, a price reduction may be too late, as interest by both buyers and Realtors®, may have waned.
* Buyers and their agents are very aware of the length of time on the market, the most common buyer question continues to be: How long has it been on the market? Often buyers are reluctant to make an offer on a home that has been on the market for “awhile”, believing that there may be something wrong with the home.
* Unfortunately, overpriced listings frequently help to sell your neighbor’s reasonably priced home, making it appear that their home is priced exceptionally well.
The Role of a Real Estate Agent in Pricing:
* Provide you with a comparative market analysis, which is a comparison of homes with similar amenities which are available (currently listed), in escrow and recently sold.
* There is no exact price; your home is simply worth what a buyer is willing to pay.
* The market determines value; together you and your real estate agent determine asking price.
Never select a real estate agent based solely on their pricing recommendation. Realtors® have no control over the market, only the marketing plan. The seller determines the asking price.