Here’s why you should try to be accurate when pricing a home.
Though it’s easy to find a buyer in today’s hot market, many sellers are leaving a lot of money on the table by pricing their homes improperly. Today I’ll be going over how to price your home effectively in order to make top dollar on your sale.
You should price your property according to its approximate market value. This should be based on comparable sales in your area within the last 90 days. This is exactly what the appraiser looks at—they compare other homes near you that have similar square footage, condition, and room counts. That’s how they can tell you whether your home is worth the amount a buyer offered.
“The best way to win in this market is to list your home for what it’s worth.”
Some people think they should price low to pull in potential buyers, but here’s why that doesn’t work: Have you ever found an item on sale online, went to the store to buy it, and then found out the sale had ended? Now, the item you wanted to purchase costs 40% more—do you still want to pay the extra money, or are you going to wait for another sale? You’ll probably walk away feeling pretty frustrated.
It’s the same thing when you price your home low—it wastes everyone’s time and sets false expectations. You won’t accept a low offer, but agents are still rushing to write offers for their clients. Listing too high also wastes the time of potential buyers. Realtors will educate their clients about how your home is overpriced, and then your home will sit on the market until you begin to lower your asking price. By the time you get to the actual market value, though, your house has been on the market for so long that people think there’s something wrong with it.
Again, it’s much better to just price your home near its actual worth. The offers that come in will be what you asked for or higher, especially in today’s market. It also ensures there won’t be problems with the appraisal. If the appraiser finds the home is worth less than what the buyer qualifies for, someone has to pay the difference. Most people don’t have that money, and they’re forced to drop out.
If you have any questions or would like more information, feel free to reach out to me. I look forward to hearing from you soon.