| Pricing your home is an art not a science.
Achieving the optimal prices is the result of both objective
research into similar properties and instinct in determining
how much a buyer will be willing to pay for your home. The right
price will attract showings, which will generate offers.
The unfortunate fact is that price is the number
one factor that most homebuyers use to determine which homes
they want to view. It’s also important to remember
that although, you and your Realtor, set the asking price,
the selling price is determined by the buyer.
The Correct Price Will:
Result in a quicker sale, with less inconvenience to the
seller
Expose the property to more buyers
Increase Realtor response
Generate more ad calls
Prevent your listing from getting stale or “shop worn”
Typically homes that sell more quickly, sell closer
to or sometimes over asking price.
Some Common Reasons for Overpricing
Over improved property
Original purchase price too high
Desire “negotiating room”
Overpricing Pitfalls
Most of the activity on your home will occur in the first
few weeks. Pricing a home properly creates immediate urgency
in the minds of buyers and agents. There is a pool of buyers
who have seen most available homes in their price range and
are now only waiting for new listings or price reductions.
A buyer that has been waiting, may fail to see your home if
it is priced too high. Sometimes, a price reduction may be
too late, as interest by both buyers and Realtors, may have
waned.
Buyers and their agents are very aware of the length of time
on the market, the most common question continues to be: “How
long has it been on the market?” Often buyers are reluctant
to make an offer on a home that has been on the market for
“awhile” thinking that there is something wrong
with the home. Unfortunately, overpriced listings frequently
help you to sell your neighbor’s reasonably priced home,
making it appear that their home is priced very well.
The Role of a Real estate Agent in Pricing
Provide you with a comparative market analysis, which is
a comparison of recent homes with similar amenities that are
available, in escrow and sold. There is no “exact price”;
your home is worth what a buyer is willing to pay. The market
determines value; together you and your agent determine asking
price.
Realtors have no control over the market, only the marketing
plan. The seller determines the asking price. Never select
an agent based on price. |
