Pricing Your Home
When you are getting ready to sell your house, it’s natural for anyone to want the absolute top dollar for the place you’ve called home. It has intrinsic and emotional value that no one else could really understand. That goes both ways though. No one else can really grasp the value that your memories hold so it makes it difficult to put a price on them, or the house, in this case. Keep reading to see what you should consider when pricing your home.
Where a Realtor Comes In
Your experienced and market savvy realtor (aka me) can help with this! It’s important to understand the differences in pricing a home according to memories and pricing it to sell.
When your home is priced too high, it will sit for far too long without much interest. An inflated asking price can scare buyers away instead of drawing them in to imagine the amazing memories they can make there.
Knowledge of the market over time and at its present state can really make a difference. With a CMA (comparative market analysis) we can help you find the perfect price to make sure you sell your home in weeks instead of months.
Finding the Sweet Spot
You have to price it just right so that your potential buyers don’t think they can find something better if they keep looking! Specifically, there are often instances where sellers come up with a price in their head that is just a little over the ideal asking price. And when I say little I mean a TINY difference if you consider the stress you alleviate by selling quickly.
The key thing here is to think about how the other end of the spectrum looks…
If you were buying a home, what would you realistically be willing to pay for it?
What is your general search going to be for a home like yours?
That search could be pretty extensive right? A home is such a big purchase that if people are even slightly intimidated by the price, they will keep looking at what else is out there. Even if they love your home. They want to fall in love when they walk in and feel right about the price they’re paying for it.
Think About It This Way
Many times, people will start their search on their own (unfortunately!) on those common sites like Zillow, Realtor or Trulia. When they do that, it’s not unusual to start the search at a standard interval number, meaning people will put their maximum at a common number that comes to mind like $325,000 or $350,000.
Sellers will want to go a bit above what they are looking for because they consider the negotiation on the back end.
So with my example price above, a buyer may be looking at homes less than $325,000 and you may price yours at $327,500. That extra $2500 can make a world of difference. When you are slightly over their range like that, you may be thinking it’s not far of a stretch. Don’t get me wrong, your home is certainly worth it. But the problem is that they put their max price in a search for $325,000 and then they never even get a chance to see your home. That $2500 difference can keep you from being able to sell your home in a few days versus a few months just because it doesn’t even get on buyer’s radar.
The End Goal
What’s more important is to aim for a price that people will happily pay and then there is no need to drop your price in the end.
Remember, when you under-price your home, you are going to cause doubt in people’s minds as to why it’s so low. When you over price your home, you will watch it sit on the market for FAR too long. When you (use a great realtor and) price your home just right, it will be within the right buyer’s radar and will sell in no time.
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