What’s The Best Strategy For Pricing A Home?
Hi, everyone. Just want to take a few minutes today to talk to you about pricing your home effectively. When you’re looking to get your home sold. There’s a lot of misconception on what it’s going to take to get the home sold when you price it way above. So I just want to make it very clear, overall it’s best to price your home effectively. So if you’re a motivated seller, and you want to get your home sold in a certain amount of time, then it’s best to list it at what it’s worth, what your professional realtor has advised you, based on what the market is showing, what the comparables are, what has sold recently, what’s currently on the market, what’s your competition that’s out there?
What homes that have sold, that have gone pending sale or they’ve had basically had an accepted offer upon based on the price they had it listed for. Now, when they get an offer accepted, it doesn’t mean that that pending property is actually going to close at the price that they have it listed for. Just means they got an offer accepted from how they had it listed. So overall, it’s best to price it where it’s at value. Now, there’s different strategies that go into this.
So when you price it at value and it is a well maintained home, or it’s one of those move in ready, nearly perfect houses, that’s going to be a great idea to list it at value because you have that potential to get a much higher offer than what you’re asking. Because when you price the home effectively where it needs to be and you have a lot of buyers who are interested in that property, in that price point, then you have a lot of people who want to make an offer. They say, well, it’s priced right and it’s how I want it’s perfect, almost in perfect condition, I want to make an offer. So when you get several buyers who are saying that same thing, you’re going to get multiple offers and therefore you can cause a bidding war, allowing you to get a lot more money for your home than what you’ve had it listed for. Now, when you overprice like say you priced it maybe $25,000- $50,000 more than what the market is showing that the value is being sold for homes like yours, then that does allow an effect of your property sitting on the market longer.
For buyers who are actively looking in the same area and they’re looking at the homes that are currently on the market compared to yours. They’ll say initially, “I think this is way over priced. All the other homes are listed way below this. I don’t even want to see this property because I know it’s going to be more than I want to spend. Don’t waste my time.”
So just by listing it way over than what the market is showing that the value is, that’s going to hurt you tremendously because what’s going to happen is not only are people not going to see it, your home is going to market a lot longer. And when your home sits on the market longer, then you have less opportunity to get close to that price. You’re going to be coming down on price, and people are going to want to negotiate low because they see the, “oh, it’s been on the market for 60 days. They haven’t got an offer accepted. Let’s give them $20,000 less just because I know they’re motivated.”
You don’t want that to happen to you want to get the best price for your home. So even if your home isn’t necessarily that perfect home but it doesn’t need a lot of work. But maybe it needs a new roof. But everything else with the home is fine.
Then maybe you want to price your home. just slightly over. Just because buyers, even though you may have listed it at value, they’re going to want to go straight down because they’re not thinking that you priced it right. They’re thinking, okay, well, they’re looking at it as if it’s a new house, right? So if it needs these details, then I want to negotiate this much off because it’s going to cost me $25,000 to fix it, not realizing that you priced it where the value is for the updates that it needs.
So if you price it just slightly higher, not too much, not 25,000, $50,000 over, but maybe $10-15K thousand more, then that buyer, the buyer is going to come in where you want them to be. They’ll say, okay, why I need to take $15,000. Perfect. That’s the offer that I wanted. So now we have a deal closed.
So those are a few tips on pricing. Again, there’s different strategies and different realtors do different things so you need to speak with your realtor to determine what’s the best strategy for pricing a home (your home). But if you have any questions, just leave a comment below, or you can leave me an email at [email protected]. All right, thank you. Have a good one. Bye.
This has been “What’s The Best Strategy For Pricing a Home” by Patrice Henderson of Designed Living Real Estate. Be sure to subscribe to her YouTube channel for all your real estate tips, home tours and advice. Get your FREE listing consultation or home evaluation to find out the best strategy to price your home.