Can You Price Your Home Too Accurately?
In a perfect world home buyers would be non-emotional, just by the numbers. Able to analyze recent Solds, project market trends, detect a rising market and be willing to pay the price that it takes to get that home.
But home buying is anything but non-emotional, right? For MOST buyers, that home buying decision is emotionally driven. They form an emotional bond to the home, or they don't. If they do, then maybe the analytical process starts and they'll determine what they're willing to pay for a home. You can bet that number is somewhere south of the list price. Chances are the recently sold homes aren't all that is driving their decision, but some emotional adjustments are being made to determine their acceptable price to pay.
Mentally they start deducting for all the things they want (or have) to do to make the home the way they want it. Maybe they assume that because their agent said average Sold to List price ratios are 95% that every home should be able to have 5% marked off?
So how does this effect you as a home seller? Obviously you don't want to underprice unless you're either gambling on multiple offers to drive the price above list, or speed of sale means the most and you just want to be done. And just as obviously you don't want to grossly overprice or the buyers won't even come and look at you.
But what can happen when you're priced in the sweet spot, dead on the money? You've hit it right on the nose, thrown the bullseye and have your home priced almost EXACTLY what should be fair market value?
Two things can happen:
- The buyers recognize you're priced appropriately and that you're not there for a 10 round game of negotiation ping pong and just want to cut to the chase and offer accordingly OR
- The buyers don't recognize you're priced appropriately and can't reconcile their emotion with logic. They may get miffed that they're not "being given enough of a deal". It's enough to make you wish you'd intentionally overpriced your home just so the buyers could feel like they got "a deal"!
Just be prepared, either reaction is possible with a priced right listing. Too many buyers in the 2nd category and you can expect to work through more than one offer before getting one that works for both you and the buyers.
If you have questions on selling your Warren County home, please contact us!
Serving Warren County's residential real estate needs,
Liz and Bill aka BLiz