Pricing Your Home Correctly: Is it REALLY that important?
Dated: September 1 2015
Today, I wanted to talk about a question I hear from sellers all the time:"How do we determine the best list price? Why is that so important?"
When we're thinking about how to come up with the best list price, we want to think about comparison shopping. In order to get the most you can out of your house, you need to figure out the value of your house. Value is created by all the buyers looking at homes on the market, and comparing them to homes that have recently sold.
We compare the features and benefits of your house to other homes that have sold, and try to figure out the value. For example, let's say you have a one car garage, and the other homes that have sold in your area have two car garages. We will need to price accordingly since your home lacks a two-car garage.
Buyers do the same thing. They're going to look in a certain area that meets their criteria, and they're going to comparison shop. The idea is you want to have more features and benefits than the competition at the same price or less. If they can get a house with more features for the same price as yours, guess which home they will pick? Not yours.
The bank that does the lending will validate the price by comparing your home to other homes on the market as well.
If you price your home right at market value, you will get an offer within the average days on market or even sooner. If you price your home too high, it will sit on the market for a long time. Buyers will wonder what's wrong with the home and look at other options, or you will spend a long time negotiating with a buyer who will beat you up on price.
If you have any questions about today's value or are curious about the value of your home, give me a call or send me an email. I would be happy to help you!
Whether you're looking for your first home, your dream home or an investment property, I'm committed to providing you with the highest quality buyer service. When making the type of investment ....
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