Pricing a home for sale is one of
the most strategic decisions home sellers must make. Of course you want to get
the most possible money for your home. However there are definite dangers to
overpricing a home or “testing the market” by starting with a bloated list
price.
The best strategy for listing a St.
Louis or St. Charles County home, or any property, is getting the price right
the first time. We’d like to show you how proper list price saves time, money
and creates better outcomes for the sellers.
Timing
You know the feeling of finding a
brand new product that just hit the market? That feeling occurs in real estate
too. Many eyes go to a property when it first comes on the market. If the home
has an asking price that is beyond market range it can adversely affect the
marketing of a property because marketing time is prolonged and initial
marketing momentum is lost.
Percent of Buyers Who Will View a
Property
The price of a property will definitely affect the number of potential buyers who will even view it. Online home search sites make it easy to filter out properties by price range in small increments. Homes priced higher than comparable homes for sale may not even filter into a homebuyer’s online search results. Fewer buyers will be attracted and fewer offered received.
An overpriced property will likely
attract “lookers” and will help competing houses look better by comparison. If the
property does sell above true market value, it may not appraise, and the buyers
may not be able to secure a loan. Finally, after many price reductions the
property may eventually sell below market value.
Your First Offer is Often Your Best Offer
Seriously consider the first offer
received. Just because an offer is received quickly doesn’t mean one should
wait for a better offer from another buyer. A better buyer rarely appears. New
buyers are waiting for the right home to come on the market and will come see
your home. Dealers may consider a lower offer after the home has been on the
market for a while. Bottom feeders are
attracted after multiple price reductions.
Properties priced correctly within
market range generate more showings and offers, and sell in a shorter period of
time. So how do you price a home accurately? Have an experienced local Realtor
create a competitive market analysis for your home. You can’t depend on a
computer-generated algorithm to know all the updates you’ve made to your home
and how it compares to similar homes recently sold. Depend on a local Realtor
that understands all these details. If
you do use a computer generated home value estimator, keep in mind that the
results might not be completely accurate.
Thinking of listing a St. Louis or
St. Charles County area home? Contact The Boehmer Team to create a competitive
market analysis for your home. A Comparative Market Analysis considers similar
properties that a) have sold in the recent past showing us what buyers in the market
have actually paid for, b) properties similar to yours currently on the market
that will be competing with yours for the attention of available buyers, and c)
properties that failed to sell to understand what they did wrong and what can
be done differently. An impartial evaluation of market activity is the most
effective way to estimate a property’s potential selling price and an excellent
opportunity for you to interview Realtors to work with. Contact The Boehmer
Team for more information.
