Why Pricing your house Correctly Matters
Pricing a house in a way that will encourage a timely sale is quite challenging for home sellers and often for Realtors. Numerous studies indicate that the longer a home remains on the market, the less money it will fetch when it sells. Finding yourself with a home that won’t sell because you priced it too high is the last thing you want to happen, which is why it is so important to price it correctly at the start.
Buyers have information on Housing Pricing
Remember, buyers have access to a lot of information about your home. With this information in hand, it is unlikely they will be taken in by a price above market value. They will also be able to see how long the home has remained on the market, and they may be prone to avoid the home the longer it remains unsold.
The days of information only being available to real estate agents are long gone. Home buyers today are armed to the tooth with information. An educated home buyer understands when they see a good deal as much as an unrealistic seller who has pipe dreams about what their property is worth.
Many sellers, unfortunately, are still under the impression that pricing a home higher leads to a higher sale price. However this is not the case! Study after study indicates that homes priced correctly from day one get more money than those that have to reduce their price.
Your asking price sends a message to potential buyers.
If it’s priced too low, you may leave money on the table or discourage buyers who may see a lower-than-expected price tag and wonder if that means something is wrong with the home.
If it’s priced too high, you run the risk of deterring buyers. When that happens, you may have to lower the price to try to reignite interest in your house when it sits on the market for a while. But be aware that a price drop can be seen as a red flag by some buyers who will wonder what that means about the home.
To avoid either headache you just need to price it right from the start, that is where I come in. I know how to determine that ideal asking price. I can balance the value of homes in your neighborhood, current market trends, buyer demand, the condition of your house, and more to find the right price. This helps lead to stronger offers and a greater likelihood your house will sell quickly. The visual below helps summarize the impact your asking price can have:
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