This morning I received an email from my broker. It included a report identifying all homes in our various markets priced for over $1,000,000.00 that have been on the market over a year. This got me thinking. When the time comes for you to put your home on the market, learning how to price your home correctly is key. It can tempting to list it for an overly high price just to see if you get any bites and if this is what you want to do, we can talk about how to strategically incorporate this into the mix, however you need to have a little game plan and strategy when it comes to pricing.
Here Are Some Tips About How to Price Your Home Correctly:
Look at Past Sales:
This is the best and most important starting point in learning how to price your home correctly. While none of the homes sold in your area are likely to be identical to yours, they should be close enough to give you a good idea where to start.
Active Listings Don’t Count:
Although it can be tempting to look at current homes for sale and how much they are being listed for, this can be a tragic mistake. Remember these homes have not been sold yet, so their prices are nothing more than a good indication of what homes in your area are not selling for.
Time is Not Your Friend:
It can be tempting to set the price for your home too high simply because you feel you are not in a hurry to sell it. However, if homes in your area are not selling, you can quickly find yourself trying to chase buyers in a declining market. In a stable market, your home is going to sit while properly priced homes sell all around you.
Leave Negotiation Space:
No matter where you set your price, you need to leave room to negotiate. While you want to get the most out of the sale, any potential buyer certainly does not want to pay too much. Despite this, you should not set your price to high as this may scare off many buyers.
Look at It from the Buyer’s Point of View:
Consider all of the things that you value in your home and exactly what it was that attracted you to the house in the first place. Consider the location, the amenities, and what affect these have on those looking at your home. Use this information to help you set your initial asking price.
No Time to Hesitate:
The housing market is a volatile and fluid place, you need to be prepared to move quickly and set the price of your home correctly from the outset, adjusting it as needed to ensure a fast sale.
One final thought, it has been shown time and again that the first two weeks your home is on the market are the most important. During this time first impressions, including your initial asking price, are going to be exposed to the highest number of potential buyers. If you miss out on this chance, your home may be on the market for a very long time.