"Let's set the price high for starters and see if we get any activity." I have heard this so many times at listing appointments.
Yes, we can ask whatever price we want for a place, but that does not mean you will get that price.
There are several factors you need to take into consideration when pricing your home.
First of all, if you start out placing the listing on the market for too high of a price, buyers will pass it over because there are other homes similar to yours that are priced more reasonably. Besides, do you want to price your home to sell your competition?
You will end up losing buyers when you price your home to high. Let me explain. Let's say a buyer is able to buy a home for $250,000 and you have your home listed at $275,000, when in reality it should be $250,000. These buyers will not even know your home is on the market because it is priced out of their price range. In essence, this buyer is most likely to purchase a different home.
Now, let's say the home is on the market for several weeks and you finally decide to drop the price where it should have been in the first place. Does this mean your home is now priced right? Not necessarily. If the market is declining, so is the price of your home. If the home should have been priced at $250,000 to begin with, and you drop the price down to $250,000. it's possible the market value of the home has dropped. What this means you are now chasing the market and your home is still not priced right. It would need to be a substantial price drop to have it competitively priced.
In the end, you will get less for your home than if you would have priced it at the market value from the start.
So, when you ask a real estate professional for a market analysis, listen to what they say. They are looking out for your best interests by informing you of what is the current market value of your home.
Brigita McKelvie, REALTOR, e-PRO, GRI
Pennsylvania License #RS297130
Keller Williams Real Estate, Betlehem, PA
Comments (2)Subscribe to CommentsComment