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.
