Pricing your Home Correctly

This just isn't true for many reasons.

1.  Pricing high helps your competition sell faster.  If you price your house above other homes that are competing with yours, you actually make buyers think they're getting a deal by going to your competition.

2.  Pricing high for the neighborhood increases your time on market because many people don't like to buy the most expensive home in the neighborhood.  To buy the most expensive home hurts resale value and for a little more, they may be able to step up into a nicer neighborhood.

3.  Pricing high will price out potential buyers.  Each buyer has a range they can spend to buy a home.  If you price yourself above the range of some buyers who can afford a price you'd be willing to sell at, you'll lose that buyer.

4.  Pricing high will lead people to think you're unrealistic and that you won't be flexible during negotiations.  Buyers prefer to work with people who are flexible, understanding, and reasonable.  Even if they really like the home, the stress involved with the process can leave a sour taste in their mouths and lead them in another direction.  Buying a home is a very emotional decision for most people.

For guidance on pricing your home for the market, please contact me today.

In the next entry, I'll address the statement that usually finds it way into this conversation, "We'll just reduce the price later, but I really want to try at this higher price first."