Pricing Your Home

Both an Art and a Science. The pricing of your home is both an art and a science. You achieving the optimal price results from objective research into comparables, a gut feeling about your property, and the temperature of the current market.

When the Price Is Right.

  • It will attract a plethora of buyers anxious to get in the door.
  • It will maximize your opportunity to make the most money possible.
  • It will help you sell in the time and on the terms you require.

The simple fact is that price is the number one factor that most home buyers use to determine which homes they want to view. It's vital to grasp that the seller is the one who sets the price, but ultimately, it's the buyer who determines the value of the home with their willingness to purchase. Try to avoid allowing your enthusiasm to impact your better judgment. Overpricing is a common mistake that can cost you in the end.

The Importance of Proper Pricing.

  • A faster sell with less inconvenience
  • Exposure to more buyers
  • Increases Realtor® response
  • Generates more interest in marketing efforts
  • Attracts higher offers
  • It means more money to the seller

How does your home stack up against others currently for sale and recently sold? Buyers will narrow their search to a specific price point and general vicinity. If you've ever heard, "I want the biggest bang for my buck," that's your savvy shopper. They are not only comparing the home to its comparables. They are also saying, is this home in its current state, everything I want and need it to be.

Common Reasons for Overpricing.

  • Over Improvement
  • Financial Needs
  • Purchasing in a higher-priced area
  • Original purchase price high
  • Lack of factual data
  • Room to negotiate
  • Lack of motivation to move
  • Assessed Value
  • Emotional attachment
  • Opinions of family, friends, and neighbors

Dangers of Overpricing.

  • Most of the activity on your home will occur in the first few weeks. Pricing a home properly and then creating immediate urgency in the minds of agents and buyers is critical.
  • Buyers who have seen most available homes in their price range are waiting for the "right house" to come on the market. If a house is priced right, it will sell quickly. The buyers are there waiting for it.
  • Don't start with a high price and assume that you can reduce it later. It may be too late when you decide to lower the price, as interest will have already weakened.
  • A major cause for concern is appraisal problems; overpricing can lead to loan rejections and lost time.
  • Even if your home is nicer than other homes in the same area, your house won't be picked for viewing if you set the price too high.
  • Buyers and agents become aware of the long exposure period and often hesitate to make an offer because they fear something is wrong with the property.
  • Attracting the wrong buyers.
  • Fewer potentially qualified buyers will respond.
  • You might help sell similar homes that are priced low.
  • You could lose money due to making extra mortgage payments while incurring taxes, insurance, and unplanned maintenance.

The Role of a Realtor® in Pricing.

  • Provide you with a comparative market analysis (CMA), comparing the prices of recently sold homes that are similar in terms of location, style, and amenities. A CMA is performed by comparing previously sold homes in the area and currently active homes to know your competition.
  • There is no "exact price" for real estate.
  • We don't tell you what we think your home is "worth."
  • The market determines the value... together, we determine the price.
  • You determine the price based on the factors you control.
        1. Marketing Time
        2. Financing Alternatives
        3. Condition
        4. Method of Exposure
  • Keep in touch with market trends and keep up to date with market activity of comparable homes.
  • Estimate your net proceeds.
  • Help to determine offering incentives.

An agent has NO control over the market, only the marketing plan. Never select an agent based on price.