The Price is Right: Getting the Hang of the Home Listing Game
You’re ready to sell your home and want to make sure you’re setting the right price. After all, you don’t want to leave money on the table, but you also don’t want to scare off buyers with an overly high price tag. Will pricing your home high work in your favor, or will it backfire? Could setting the price low spark a bidding war and ultimately get you more than you expected? Why does correctly pricing your home matter — or does it? And what message does your list price send to potential buyers? Let’s take a deeper dive into these questions.
According to Frannibilus.com, pricing your home accurately can be the difference between a quick sale and months of sitting on the market. The article goes on to state that, The price you set for your home is one of the strongest signals to potential buyers. In today’s digital age, information is at our fingertips, allowing buyers to easily research recent home sales in areas surrounding the listed property. Therefore, setting a competitive price can help you sell your home more quickly.
Here are a few things to take into consideration:
· According to The National Association of REALTORS®, the longer a home sits on the market, the lower the sales price becomes in comparison to the listing price.
· An exaggerated price often dissuades buyers.
· Pricing too low may cause buyers to question whether something is wrong with the home.
· An incorrect price can lead to a house being on the market too long – again, causing buyers to speculate as to why the home has yet to sell.
· Setting a competitive price can potentially prompt a bidding war.
· Setting the right price increases the odds of receiving an offer – and usually more quickly.
· The right price attracts more viewings of the property.
· If the market warrants, sometimes listing your home below market value can work for you, driving the price higher.
· Pricing too low may result in a loss of money if the strategy and timing is not correctly assessed.
· If you’re in a seller’s market or in a highly desired area or neighborhood, pricing higher can work in your favor.
· Working with a qualified real estate agent ensures you set the best list price for your home by employing their knowledge of the market and the local sales trends.
So, how do you land at that perfect price? How do you know if you’re in a buyer’s market or if it’s a seller’s market? What signals that you need to adjust the price? How will you know? As mentioned in the last bullet point above, working with a trusted real estate agent becomes invaluable. As Frannibilus.com cites, An experienced agent will conduct a comprehensive market analysis, looking at recent sales, the condition of your home, neighborhood dynamics, and current market trends. They’ll help you set a price that reflects the true value of your home while maximizing its appeal to buyers. It’s also important to understand that pricing isn’t static. Market conditions can shift, and it’s essential to stay agile. If your home isn’t generating the expected interest within the first few weeks, it might be time to reassess your pricing strategy with your agent and make adjustments accordingly.
Indications that an adjustment should be considered are:
· Low traffic and few showings.
· Few or no offers.
· Repeated negative feedback.
· Extended time on the market (beyond the market area trends).
· Other homes in the neighborhood have sold quickly.
Competitive pricing is critical to ensure a successful and timely sale. Whether it’s making timely changes to your list price or utilizing strategies to spur buyer interest, a trusted real estate agent is a great resource in navigating the complexities of pricing. The right price will attract more buyers AND can help you get the best possible return on your investment.
Sandi Downing Real Estate/Keller Williams
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