There are 4 common strategies that most sellers use to price their homes. Remember, a higher asking price will not always get you a higher selling price
Clearly Overpriced – Everyone who sells their home wants to sell it for the highest price possible. If you have more than one agent competing for your listing, an easy way for one of them to come out ahead is to overinflate the value of your home. This is not in your best interest however as most of the time the market won’t be fooled. As a result, your home could stay on the market longer that it otherwise would which can result in:
a) Your home being labeled by other agents as a “troubled” house, leading to a lower than fair market price when an offer is finally made
b) You will be continuously inconvenienced by having to keep your home in “showing” condition on the chance that someone wants to see it.
c) These homes often expire off the market, causing you to go through the listing process all over again.
Somewhat Overpriced – About 75% of the homes on the market are priced 5-10% over their actual market value. These homes will also sit on the market longer than you want. Whether you truly believe the home is worth more than the market indicates or you want to leave yourself some room to negotiate, this strategy will cost you both in time on the market and ultimately, on the price received.
Priced Correctly at Market Value – When you carefully and realistically price your home, it will usually sell much faster and very close to the asking price. This is where a Professional Home Evaluation comes in handy. An experienced and educated real estate professional can determine your home’s value on the current market in an impartial way.
Priced below the Fair Market Value – Some sellers are looking for a quick sale on their homes. Sometimes the easiest way to achieve this is to price the home below market value. Homes priced in this way often attract multiple offers and sell fast, at or above the asking price.
For more information on accurate pricing in your neighbourhood, or how to price your home strategically and effectively, get in contact with us today at 519-797-1755!