Determining how to correctly price a home for sale is one of the most important factors in selling a home. Statistics show that setting the correct market-determined price the first time will ultimately achieve the best sale price. To find the best price for a market an impartial evaluation of recent market an experienced REALTOR should perform activity.
Why shouldn’t I price my home high at the start then go lower if no bids come in?
Putting a home on the market at a price that is over market value in hopes that a buyer will fall in love with your home and be willing to pay anything is a strategy that rarely works. This type of buyer is extremely rare. Buyers generally want the most home they can get for as little money possible.
Pricing a home correctly the first time captures the momentum a new listing has in the marketplace.
New listings are exciting to homebuyers who have been looking and know what is on the market. If they see your property and find that it is overpriced for the market, they may mark it off their list and move on. Incorrectly priced properties will lose this new-listing excitement among buyers as time goes on. Marketing time for your home will become prolonged as the initial marketing momentum is lost.
Pricing a home correctly will bring in more potential buyers.
If a home is overpriced compared to the market, fewer buyers will be attracted and fewer offers received. The property will attracts “lookers” and will help competing houses look better by comparison. If a property does sell above true market value, it may not appraise, and the buyers may not be able to secure a loan. Or, the property may eventually sell below market value due to market stagnation and price reductions.
So how do you correctly price a home for sale?
An impartial evaluation of market activity is the most effective way to estimate a property’s potential selling price. Experienced REALTORs use a Comparative Market Analysis that takes the following into consideration:
· Properties that have sold in the recent past show what buyers in the market have actually paid for properties similar to yours.
· Properties currently on the market that will be competing with yours for the attention of available buyers.
· Properties that failed to sell should be studied to understand why they did not sell as to avoid similar disappointment.
Pick a real estate agent based on reviews and experience, not how much they will initially price your home.
When trying to win your listing some agents may be tempted to offer an unrealistic initial sales price to get your business. These agents know full well they will have to reduce, reduce, reduce – the wrong strategy. Speak with The Boehmer Team before listing your home. They are highly reviewed, awarded and experienced agents that know the market well. Even if they need to recommend repairs or staging services, the Boehmer Team knows how to get the most for your home sale.