The price you choose to list your property at is a large determining factor in how quickly and easily you will sell your home. For your home to sell, its price must meet two needs. The first is the buyer’s needs and the second is your needs.
You must give pricing your home careful consideration. Not only should the listing price appeal to buyers, the sale of your home must also meet your financial needs.
Where do you stand financially with your property? Do you owe on the mortgage? Are you looking to put the money towards another investment? Do you need to sell to fund your retirement or pay for medial expenses? These scenarios are factors that will directly affect the listing price you settle on.
At the same time, you aren’t the only party in the equation. Your home’s listing price must also meet the buyer’s needs. How much are they able to qualify for? Are they paying in cash? What is their budget? Does your home need repairs that the new buyer will have to put money towards right away?
What To Consider:
Comparables are a great place to start. Realtors provide their clients with comparables to show them what similar homes in their area are selling for. Reviewing comparables is the single best way to determine what your house could potentially sell for.
After you research comparable listings, you must take into account the age and current state of your home. Does your property need repairs? How old is the HVAC? Does the kitchen need an upgrade? All of these factors will determine how much you can ask.
No matter the variables, your home’s price should be well thought out. To give your home a fighting chance against other properties for sale in your area your home should be strategically priced.
Some realtors suggest pricing homes below market values to attract the attention of buyers, but this isn’t the only tactic you can (or should) use.
Pricing strategies are far more beneficial than simply pricing your listing below market value. Often times, when a home is priced well below comparables buyers will wonder why. They’ll suspect issues with the home that may not be visible to the naked eye and such suspicions can cause complications in the sale of your home. Not only will they drive away potential buyers, they’ll cause the closing process to go much slower as the buyers will likely want additional inspections.
Strategic pricing is far more beneficial to the quick and easy sale of your home. Instead of pricing your property at $500,000 you could consider pricing it at $497,000. $3000 is not much of a loss on your end and it will make a
big difference when your home hits the market.
Market-conscious pricing is decided through comparables while psychological pricing strategies hit the pricing nail right on the head. You will likely be surprised at how many more interested buyers there are for a home priced just under $500,000 versus a home priced right at the $500,000 mark.
