Setting The Right Price
SETTING THE RIGHT PRICE
Setting the Right Price in a Buyers' Market:
A home, properly priced from the beginning, will sell more quickly and for a higher price than one that was originally overpriced because it’s not chasing a falling market.
Overpricing will:
- Reduce Agent and Buyer interest
- Deter interested Agent and Buyer calls
- Attract the wrong prospects
- Eliminate offers
- Help to sell “the competition’s” home by making their home look like a better value
- Cause appraisal problems and may lead to mortgage rejections
- Extend the marketing time of your home
Some sellers believe they should price high so they’ll have room “to negotiate”, but they find they have no offers with which to negotiate because they’re not competitive in the chosen price range.
No offers = No opportunities to negotiate / sell
Market Time:
A newly-listed home will generate an initial surge of activity. This activity typically peaks in the third week after listing because the current pool of buyers has been exhausted. By overpricing you deter interest in your home when activity is at its peak.
Morris Group Realty will provide you with information to consider:
- Current market activity via a thorough, detailed market analysis
- What buyers are willing to pay for homes similar to yours
- Which homes will be competing with yours for the buyers’ attention.
Ask yourself these questions:
- How quickly do you need your home to sell?
- How much competition is there in your price range and area?
- What other factors might impact the sale of your home?
- Can you offer any other incentives to attract a buyer?
As you determine the asking price of your home, consider the pricing of homes similar to yours that have actually sold. When considering homes still on the market (your competition) note the asking price and the length of time on the market.
Some things that will NOT affect your asking price:
- The original cost of your home
- The cost of improvements made
- How much it would cost to build your home today
- The opinions of friends and neighbors
- What you want / need to net
