When you list your house, you want it to sell fast and at a high price. In order for that to happen, it needs to be priced right. But this is where it gets tricky. Price it too low, and it may sell quickly but you’ll leave money on the table. Price it too high, and it may take months and several price reductions to sell. The solution is to work with an experienced Realtor. Here are some of the things real estate professionals consider in setting the right price for your home:
- There isn’t one correct price for a given home: a home’s value depends on neighborhood and current market activity. This is why Realtors study recent sales of comparable properties so carefully.
- Sometimes a slightly lower price will attract extra buyers who may compete for your home and drive the price up (or eliminate the need for discounting). But an underpriced home can make buyers suspicious that something is wrong with the property.
- An overpriced home can sit on the market longer, which can again make buyers suspicious that something is wrong. Repeated price reductions can have the same effect.
- Research shows that the longer a house sits on the market, the lower its final selling price will be. Often, houses that start at a lower price sell more quickly and the buyer ends up making more money.
- Price categories are important. When buyers do online searches, they enter a maximum price. If you inadvertently exceed a maximum price level by even $5, a huge number of buyers who can afford your home will never see it!
- Check out websites that offer estimates of your home’s market value. This value won’t be as accurate as your Realtor’s. But buyers will be looking at these sites, so you should make sure you’re not too far off base.
If you’d like help deciding on the right price for your home, we can introduce you to one of our trusted local Realtor partners. Contact us today!
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