Pricing your home correctly is a key decision in selling!
Selling your home can be very stressful. How and where to price your home relies on many key and important factors. An appropriate selling price is determined by: the current supply and demand for homes on the market, the economy (especially local), your home's location, recent sales in the area, active listings (your competition), the condition of your home, its square footage, and the time frame in which you'd like to sell.
An experienced Realtor who understands the "pulse" of the market can assist buyers with finding exactly what they are looking for and this leads to those buyers making offers on your home. I have heard MANY sellers say that their biggest regret was not pricing their home correctly when it was first listed. Keep in mind that most exposure and showings for a home occur within the first 30-45 days of being on the market.
Understanding the real estate market:
1. If your house isn't getting the showings it should be getting, then it could be a sign that your house is overpriced when compared to other active listings in that area. REMEMBER - most buyers work with buyers' agents and most buyer's agents have a pretty good handle on whether a home is overpriced or not.
2. If your house is being shown, but you are not getting any offers, it could indicate that something may be wrong with your home's condition OR that buyers are finding nicer homes for the money.
3. When you finally get repeat showings from the same buyer(s), then it means that your house is attractive enough for that buyer to make a potential offer at it's current price.
5. According to the National Association of Realtors, if your house is priced correctly, you should get one offer for every ten showings!
Pricing your home in different markets:
A. Overpricing in a rising market may be OK.
B. Overpricing in a falling market is disastrous.
C. Market trends are as important as pricing.
Advantages of proper pricing:
A. A faster sale which will save carrying costs.
B. Less inconvenience.
C. Exposure to more prospects.
D. A better response from advertising and sales calls.
E. Attracting higher offers.
F. A higher return on their investment for the seller.
Reasons for overpricing:
A. Over improvement - buyers don't expect to pay the seller's total costs of improvements in a falling market.
B. The need for money does not increase the value of a home.
C. The home's prior purchase price was higher than market will offer at the time of its resale.
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