Pricing your home can be one of the trickiest elements of the selling process in general. Naturally, most sellers are inclined to want to price it high in order to gain as much return on their investment as possible. But beware! If you get the price wrong, you risk putting off potential buyers and delaying the process longer than anticipated. Read on to learn why.
If Your Price is Too High
- You’ll risk putting off buyers whose budgets are below your asking price. Even just a $10,000 to $20,000 increase can set your home outside of their constraints and cause them to resist visiting it because they realize they can find better value elsewhere.
- If you do find a buyer willing to pay over the going market rate for your home, they might run into trouble getting their offer financed because banks may decline the loan given that your home’s appraisal value is lower than its contract price.
- Your listing receives the most viewings within the first four weeks of being on the market. If you fail to find a buyer within that timeframe, most home owners are typically forced to decrease their home’s asking price to a lower rate than they originally anticipated. Most buyers will begin to wonder what’s wrong with the home because it hasn’t sold yet.
If You Price Fairly
- In an active market with multiple buyers, pricing your home fairly can incite several individual offers and often leads to a bidding war where you might receive a higher asking price simply due to the competition!
- Buyers will also have more faith in you as a homeowner. By seeing that you’ve done your research and priced your home fairly, they’ll likely also trust that you’ve kept your home in good condition.
Setting the Right Price
We recommend pricing your home at a value that is in line with what similar homes are selling for in your market. Working with a Royal LePage Performance Realty agent can help you objectively evaluate the market and resist underpricing or overpricing your home for the smoothest sale possible. Ready to sell your home and need help determining the best price? Contact our team of expert Realtors® today!
