Pricing Your Home
When it comes to the sale of your home, setting a logical asking price can actually take some skill. Some real estate experts would even say that there is both an art and a science to it. A skilled professional will take a number of factors into consideration before determining a price, though a part of the process takes pure experience and a gut feeling about what is right. Setting a feasible price is important, however, because it should attract interested buyers, earn you the most money possible and help sell your home quickly.
Because the very first factor that people look at when determining which homes they are interested in is the asking price, it’s imperative that you go about setting it using logic and research. Determining factors include availability of local housing, current real estate market, improvements, recent sales of comparable properties and urgency of selling.
Proper pricing allows sellers to enjoy the following benefits:
- Faster sale and less inconvenience
- Exposure to more buyers
- Faster responses from buyers and their agents
- Higher offers
- Higher profits
- Less exposure time meaning that your home avoids being overlooked by realtors.
One of the killers of a home sale is overpricing. Your professional real estate agent should be able to help you avoid doing so, however, the choice of how much you’ll list your home for is completely up to you. Though you may have your reasons for doing so, the dangers of overpricing cannot be overstated. The reasonings behind not setting the asking price too high include:
- You’ll lose the ability to create urgency for both agents and buyers. Agents are highly adept at determining if local properties are overpriced and will wait for you to reduce your price before showing their clients your home. By that time, they may have bought something else.
- Appraisal values are not likely to meet your inflated price, which can lead to buyer objections and rejections of funding, resulting in a loss for each party.
- You risk outpricing other properties in your same neighborhood. If a buyer has the opportunity to live in the same location without paying extra, it’s likely that they’ll do so.
- Long exposure tells buyers and agents that something may be wrong with your home if you haven’t sold it within the average amount of time; which in turn puts even more buyers off of the idea of even looking at your house.
If your agent is recommending a lower price than you were initially comfortable with, understand that that is what you hired them for and that their expertise, knowledge of the area and market and their intent to sell quickly is worth its weight in gold.