Pricing your home right is a balancing act. You want to price it low enough to attract buyers, avoid appraisal issues, and stay competitive with other homes, but high enough to maximize your return on investment and make the most from your sale.
If you overprice your home:
+ You could potentially make more money off the sale (if you are lucky)
- It will likely take a lot longer to sell.
- The longer your home sits on the market, the harder it becomes to sell.
- Your home may not appraise, so you'll be forced to lower the price or put your house back up for sale if the buyer decides to back out.
- Potential buyers may be put off by the high price tag and decide to look elsewhere, or they may not even see your listing due to the price range they set as their criteria when searching for homes online.
If you underprice your home:
+ You'll likely sell quicker.
+ You could increase your chances of getting multiple offers (potentially some offering to pay over asking price), giving you more room to negotiate and potentially selling for a higher price.
- You could miss out on potential profits
- It's likely to be seen as desperate to potential buyers, making them wonder what's wrong with your home
- It could lead to buyers offering less than they would have otherwise because they assume you don't know what you are doing
If you price your home correctly:
+ You won't have any appraisal issues
+ It will sell quickly
+ You will avoid having to reduce the price later due to sitting on the market for too long
+ Buyers and real estate agents will recognize and appreciate a fair price, and will have more confidence in submitting an offer
+ You'll increase visibility and drive more buyers your way, as your home will show up on more buyer searches when listed at a fair price
Setting the listing price is one of the most important steps when it comes to selling your home, and it's crucial to get it right the first time. Working with a trusted and reputable real estate agent is key to avoiding overpricing or underpricing your home.
As your real estate agent, I will do a CMA (competitive market analysis) report to look at comparable sales (the price homes have recently sold for in your neighborhood/area) to help you set a competitive and fair listing price.
I have the knowledge to educate you on the current market trends, answer all of your questions, and help you to set a listing price that will allow you to sell your home quickly and for top dollar!
Thinking about selling your home this spring? Send us a message, we'd love to chat!
Photo By: One Look Real Estate