When it comes to real estate pricing, the strategy that you employ when pricing your home is perhaps one of the most critical components of actually selling your home. You can list it at whatever price you like, but at the end of the day, if potential buyers are being hit with sticker shock at first glance, you are doomed.
It may seem like a bit of an exaggeration, but when buyers and buyers agents perceive your home to be overpriced, in comparison to other similar properties currently on the market or recently sold, that perception very quickly becomes reality, and we know what happens from there.
When it comes to proper pricing, there really are no ‘alternative facts’. Perception IS reality.
I know, I’ve heard it before- “But if I list my home at X amount of dollars as suggested, buyers will offer much less, and I will never be able to sell it for the asking price. I’m better to ask 20K more so that I have a ‘pad’ for negotiations”.
False. Overpriced homes sit for much longer, can become stigmatized, and at the end of the day, typically sell for less than market value. These are the homes that people watch, wait, watch, wait, and wait some more for.
You can read more about the perils of overpricing your home here from my Blog Post ‘Listing Price- Ask for More, and Get Less‘.
In order to avoid sticker shock when attempting to price your home for sale, your Real Estate Agent should take the time to sit with you and review similar types of properties that are currently on the market as well as similar types of properties that have recently sold. Ask yourself objectively- where does my house fit amongst A.- the competition, and B.- the recently solds? Be very objective, and distance yourself from your personal feelings about your home, and consider what perceptions potential buyers might form.
At the end of the day, Real Estate Pricing is a job best left to professionals that are experienced in both current market conditions and recently sold data. Avoiding sticker shock with potential buyers, and ensuring that your home is competitively priced is an integral component of the sales process.
If you would like to meet to further discuss a strategic pricing plan for your home, feel free to reach out- I would love to hear from you!
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