Getting a home sold and to settlement for the highest price the market will bear is not always about asking the highest price you can.
There is always this picture of sellers fighting with their listing and potential listing agents over price. The seller wants $xxx,xxx and the agent is shown as wanting to price the home at less than this price. The price a home sells for has nothing to do with what a homeowner paid for the house, what he spent upgrading it or what the neighbors house sold for, or how much the seller needs to buy his next home.
It has everything to do with what buyers in the market are willing to pay for this specific home. That is driven by the value they perceive the home offers and how many of their desires and needs it meets.
When you purchase a car and comparison shop, the car with the more options at the lower price is obviously the best deal. Likewise, buyers are comparison shopping your home with what else is on the market and what has recently sold. If it does not have the same or more options as other homes and the price is higher there is no perceived value.
Pricing your home to high may result in buyers not coming to see the home, or worse yet the wrong buyers not coming to see the home.
Another reason for pricing high is to leave room for negotiation, because all buyers want to offer less. Whilst this is a natural presumption, buyers are more aware of the market than sellers as they may already have missed out on purchasing a previous home, so their offers will be realistic in comparison to the state of the market.
So, to obtain the highest price in a market that is short on inventory is to price it such that it will attract the most buyers to the door and allow them to realize the potential and spur them to action. It becomes like an auction allowing you the seller to review a group of offers that should be in the same price bracket and really to then decide which is the cleanest most attractive offer from the strongest buyer and that may very well not be the highest priced offer.
Good luck, and if you need help with listing on The Philadelphia Main Line contact us and we will help you not just price your home but to get it sold as well.