Pricing your home correctly from the beginning is crucial, even in a high-demand market—maybe especially in a high-demand market. Pricing right will lead to the best final sales price. I’ve had many sellers tell me they want to price their houses much higher than they should; they’ve heard buyers are paying over asking price and they have time to test the market.
When you price a property too high, it may fall out of certain price points that buyers will be searching in for homes like yours. Exposure is the key to marketing your house. If we lose that huge pool of buyers because the listing is at the wrong price point, it may lead to far fewer showings and less interest. Also, there will be buyers who view the home and like it but get concerned it’s priced too high. Most won’t even make an offer because they believe it isn’t worth that or won’t appraise for such a high price.
“Pricing right will lead to the best final sales price.”
Additionally, all buyers are hearing right now is how houses are selling for over asking price and that they could get into a bidding war. Why would they make a lower offer if they think it will be a massive waste of time?
If you decide to test the market, remember: The longer the property sits on the market, the more the demand decreases for it, and the perception of your listing will become negative. Buyers will also make lowball offers if your home has been on the market for a while.
After any of these scenarios, the seller is forced to lower the price, and often the house sells for less than where it would have been priced if done properly. Pricing reasonably from the start leads to more showings, interest, quicker offers, and likely multiple offers which can drive the price up. When buyers get into competitive bidding situations, emotions come into play and offers increase.
So what’s a reasonable price for your property? Give us a call or send an email; we’ll discuss the specifics of your home and what you want to accomplish. We would love to be your real estate resource.
