It is essential to price your home correctly when it comes time to sell, but why is that, and how do we come up with the correct price?

Why is pricing your home correctly so vital when you’re listing it for sale?

We try to market your property to buyers who are ready, willing, and able to purchase it. These are the ideal buyers, as they’ve been out with a Realtor, looked at properties on the market, and spoken with a lender to get pre-approved. Now, all they need to do is see your house, so we need to make sure that we’re ready. We need to target them in the correct listing price point.

So why is overpricing your property so risky?

Overpriced properties tend to help other properties sell. Buyers who can’t your price will not even be able to see it on the MLS. The buyer or their agent might like your property, but the bank may not. If it’s outside their market range, the bank won’t pre-approve them for a mortgage. Then your home will sit on the market as a stale listing.

How about the opposite: Is it ever wise to list your property below market value?

As we’ve seen here in the local market in the last couple of years, there’s not enough supply. Properties have been listed and selling very quickly, often well above asking price. This is a strategy that has been used quite effectively in the last few years. Market conditions are changing, so we need to make sure that if you’re going to price your property at or below market price, you’re using the right judgment and that there are enough buyers out there to create demand to give you multiple offers.

“Overpriced properties tend to help other properties sell.”

How do we come up with the right price?

We give you a market analysis that’s based on the market as of today. We evaluate your home’s size, the lot, the age of the house, the number of bedrooms and bathrooms, any updates that you’ve done that make your home unique, and examine the conditions of the interior and exterior.

Additionally, we offer home staging so that when your home appears on the MLS, it will be in its best condition. We’ll compare your home to local area sales and active listings and note current market conditions.

Finally, how do we know that your property is priced correctly?

It’s simple: my phone will ring.

If you have any questions about pricing your home for sale, don’t hesitate to reach out to us. We’d be glad to help.