When your home is on the market, pricing and presentation are two of the most important factors determining how quickly it will sell. Most likely, you will expend a great deal of effort and expense ensuring that the property looks its best for maximum appeal to buyers, but your efforts will be in vain if the price is too high. Sellers often have a preconceived idea of their homes’ values and are disappointed with the listing price suggested by Realtors. Realtors are highly skilled in setting listing prices and their suggestions are therefore entitled to consideration, but having an educated opinion of your home’s value may help you arrive at your ideal price. Here are some strategies to consider:
1. Start off on the right foot. The first few weeks that a property is for sale are critical. If the initial price is too high, buyers will overlook the property, worsening the odds that it will linger on the market for an inordinate amount of time. If your home has been on the market for too long, buyers may suspect that there is something wrong with it or assume that you are growing desperate to sell and would thus be amenable to a lowball offer. To avoid these undesirable scenarios, choose an initial listing price that accurately reflects your home's value in the current market.
2. Emotionally detach yourself and view your home as a commodity, just as buyers will. After years of living in your home, you undoubtedly will have developed an affinity for it that may cloud your judgment when it comes to determining a listing price. Though it may be difficult to accept, the fond memories that you have made in your home or even the price that you paid for it will be of no significance to buyers. When setting a price, try to step into the shoes of buyers who are objectively viewing several other similar properties.
3. Consider buyers' search strategies in specifying a listing price. As a buyer, you would probably search within price ranges. For example, you may search for properties between $300,000 and $350,000. Apply this methodology as a seller: if you price your home at $355,000, you may evade a large portion of would-be buyers. Pricing within a standard search range, such as at $349,500, will maximize both your exposure and ultimate selling price. Furthermore, setting a price just below a round number has the effect of making a commodity seem far less expensive. Retailers employ this tactic regularly when they price an item at $9.99 instead of $10.
4. Consider the effect that extrinsic factors have on home prices. For example, the time of year may impact the amount a buyer is willing to pay. Spring is the most opportune season for sellers because many buyers want to settle into their new homes before the school year begins, while winter is the weakest season because buyers are more focused on the holidays or stabilizing their finances after holiday spending. Therefore, you may be able to command a higher sales price during the spring. In addition, the amount of inventory in your area will influence your home's value. If you are one of the only sellers in a desirable neighborhood, you will be able to fetch a higher sales price.
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