Where do we price our home in this market?? Low? High? In Between??

In this market it is very difficult for home owners to know where to price their homes. They are really in need of our services and expertise more than ever. In the beginning of this declining market I found that many agents were listing very high, well over what one could expect the offers to come in at, in order to make the buyers feel like they were getting a deal when they offered a much lower price that was then accepted. The philosophy behind this was that because the offers were so low, they had to price higher, just expecting this. I did not succumb to this pattern and am glad that I did not. I found that many of those sellers have had their homes listed for what seems like forever. They are then following the market down. This in my mind is not a good thing and not the correct way to price or sell a home.

When I take a listing I explain that we are in a declining market. That people buying are wanting tomorrow's lower price today. If we price well by looking at BOTH what is actively competing against their home in the market place for sale now, and then the closed comps that they will be using when the lender is appraising the house, we can select a price close to where the sellers want to end up. A realistic price in this market place. When you price a home well, it shows better than other homes in that price range that have been priced high but priced out of their league. You want your listing to be the best in that price range. You want it to shine and stand out against the other listings. If you price too high, this will not happen. Your home will not stand up against the others. I say that you should be pricing the homes as close to what is acceptable as possible. Give a little wiggle room so that you can negotiate a bit if necessary, but really make it a good deal from the time the buyer walks in the door and takes a first look.

Pricing is so very important. If you price too high you will lose the buyers that cannot afford the higher price, but could really afford to buy the house at the price that you are willing to sell.Those qualified buyers may never even see your home if you price it higher than they can afford!  Get serious about your pricing. Get your sellers on the same page. If you want to sell in this market, put a motivating price tag on it and get it moved. Next year, it could be worth less so do not hesitate and waste precious time with prices that do not make sense.