How to Correctly Price Your Home


Chances are your home will sell at its fair market value. Pricing it realistically in the beginning simply increases the likelihood of it selling for your asking price and in a shorter period of time.

What most sellers don’t realize is how important it is to price their homes correctly when they put them on the market. Obviously sellers want to get the most for their home. But there are problems with overpricing your home.

If a home stays on the market too long, it becomes stale. The most activity takes place within the first 30 days of a listing. A home typically gets the highest and best offers during this time. After that, only new buyers in the market will see your home.

Your goal is to enter the market in a position that will attract prospects, not drive them away. Prospects may wonder why your home’s been on the market so long. They may assume something is wrong with your home, even after you lower the price.

You may lose a strong negotiating position when you house has been on the market too long. No one will rush to make offers on an overpriced home, so you will likely have to accept less when they do make an offer.

Buyers are getting smarter
Because the majority of buyers first look on the Internet when they decide to buy a home, they are exposed to many homes. They will soon learn when a home is overpriced. What’s more, they probably won’t even look at a home priced $10,000 over their price range.

Buyers are ready, willing and able to buy a home that they see is a value for their money. Think you can convince them to buy your home above its market value? Maybe. But it will not appraise at the overpriced amount and the deal will fall through.

Be aware of the things that should not be part of the pricing process:

  • how much you paid for your home
  • the cost to rebuild your house today
  • your investment in the home (i.e., improvements)
  • personal attachment
  • certain improvements such as a pool which, in some cases, decreases the appeal of a home


To get an idea of what your home might sell for, get a Certified Market Analysis (CMA). This report has all the relevant information about comparable homes sold or on the market in your area. You can get your free CMA from me now.



 

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Bill Zufelt  Realtor® License #01491164