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We're constantly asked by homeowners how to get the best price from the sale of their home. The one simple thing you can do to guarantee the maximum value is to price it correctly.
If you want demand for your home, price it low. This may seem counter-intuitive, but price impacts visibility. According to the National Association of Realtors, pricing a home at market value would allow you to reach about 60% of buyers. If you priced your home 15% above market value, that number sinks to just 10% of buyers.
On the other hand, if you go the other way and price your home 15% below market value, you can potentially reach 90% of all buyers.
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Price impacts visibility.
Many homeowners think overpricing their home slightly will leave them room for negotiation, but in reality, all it does is lessen demand for the home and decrease the number of buyers willing to look at it. The home will sit on the market for a long time, giving buyers the perception that something is wrong with it. Most of these sellers end up having to reduce their asking price significantly.
You should price a home so that demand is maximized. That way you won't be fighting a buyer over the price, but rather, multiple buyers will be fighting with each other over the house. Today's buyers are informed. If you price your home at or slightly below market value, buyers will see the deal and bid up the price, especially in areas with low inventory.
If you have any questions about pricing a home correctly, we can help you find the right number. Give us a call or send us an email. We look forward to hearing from you soon!
