Pricing Your Home....Don't Chase The Market, Lead It If You're Serious

 

Pricing your home when you list it is always a tricky thing....this is nothing new. I think it's a mis-perception that an agent is doing their best for a seller when they try to get the very highest sales price they can for a home.

Of course, we want to maximize the profit (or minimize the loss) of a property transaction...but the financial picture is much bigger than just a sales price. We must also consider the next step. What can be lost by "chasing the market"?

What is chasing the market you ask? Great question!

Often a seller will price a home slightly higher than the most recent comp, or the house down the street. They might think that they are leading the prices up. But are they really? If the logic is that "we'll try this price for a few weeks and then lower the price if we need to." Then there is too much uncertainty in the value.

Unless you are completely sure that the market is raising....then never be the highest priced home on the market.

After those few months...strategies like this start to fail. The price decreases are seen as "motivation." The temptation is always to stay just above the other homes in your market. Thus you are always in the position of chasing the market....downward. But by staying slightly above everyone else, you are never the prize.

Had another strategy taken hold....at the beginning. Pricing it right, or even aggressively? Often we find that the home sells quickly and at a much higher price than it would by chasing the market down over a month or so.

 

 

 Karen Fiddler
Broker/Associate
The Fiddler Realty Team/eVantage Real Estate
Lic # 01494165

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