There’s a fair amount of psychology and strategy that goes into determining a home’s asking price.
When I am working with a homeowner to sell their property we both must agree on the approximate value of the property. Let’s say we determine your home is worth around $400,000 based on the recent comparable sold sales, similar to your home, in your neighborhood. After looking over the data and considering markets conditions, location, size and age, we decide your home's value falls somewhere where between 380,000 and 420,000, the next step is to set a listing price. Below are 4 pricing strategies for sellers.
1. Appeal to the Masses
By pricing your property on the lower end of the value range, you could generate lots of interest among many buyers which creates an urgency. This could result in multiple offers depending on market conditions. Also, if you’re wanting to sell quickly, this would be a good option.
2. Price it to be Found
Most buyers tell their agent they want a certain number of bedrooms, and baths in a specific price range. I find consumers search in increments. An example would be, 375,000- 400,000, 400,000- 425,000 and so on. So make sure you price it right to be found in searches. Pricing your home at 400,000 instead of 399,900 would bring in buyers looking in the price range of 375K to 425K.
3. Pricing Strategy
Sometimes, sellers have high expectations about their property’s appeal and they want to ask top dollar for it, even though it may be a stretch to get that price. Perhaps someone else has planted a number in their head, either way I will always try to get them that number, ( as I will admit, I am not perfect and have been wrong before) but we must have a pricing strategy in mind before the home goes up "for sale" just in case the property isn't selling at the initial suggested price. We don't want the home to sit too long and have the listing get stale. You must adjust accordingly to what the market is telling us.
4. Pricing is Not "Set and Forget
A buyer determines the market and will only pay what they feel the home is worth to them. That is how the market works and it is something agents or sellers can't control. Pricing is not something you set and forget, it should be an ongoing discussion. A lot of factors come into play when selling or buying a home, and not all of them can be anticipated. If you can be flexible and react quickly to changing market conditions you’re more likely to get the best price with the least amount of hassle.
If you are interested in selling your Fountain Hills or Scottsdale home, I would love to meet with you to go over your options. You can easily reach me via email, or call me at 480 888 6708.
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