In an “up” market, usually referred to as a “buyers’ market,” you can get away with pricing your home a little higher than market value. If you do this is a slow market, often referred to as a sellers’ market, you can end up with a devastating result.
The key to understanding how to properly price your home comes from knowing your home’s “Current Market Value” and the details of the market where your home is for sale. Only then can you fully understand how to deal with minor repairs, determining a listing price and preparing for a reasonable time period that your home will be on the market.
As a Real Estate professional, I can guide you through every step of the selling process with my pricing system.
Pricing Realities
Yes, it’s true! The higher you price your home, the fewer buyers will look at your home. You should see activity if you are listed on MLS® in any market; if you’re not seeing activity, your selling prices is a major indicator.
When You Price Beyond Market Value:
- You will reduce the number of prospective buyers (see chart), which may not matter in a sellers’ market, as the number of buyers is high. In a regular market, prices increase or decrease less that 2% annually.
- Helps to make your listing less competitive, as homebuyers generally price shop. As buyers look at all online home listings with their agent, they become quite educated in the marketplace, quickly identifying the available home that is best suited for them.
- You eliminate interest in your home through online searches and advertising.
- You risk rejection of mortgage approvals – if the home won’t appraise, the lender won’t lend!
- You risk being labeled – many homes are labeled by the industry as over priced, based on market competition, usually resulting in one word: “expired.”
- More responses to advertising
- More showings
- A house that statistically sells in the first 30 days, resulting in the higher price
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