You are ready to put your home on the market to sell. One of the most important decisions that you will be making is the list price for your home.
Your real estate agent should be able to give you expert advice on setting the price. Agents work in the market and should know of recent sales and the current market. Be sure that your agent does a market analysis for you so you have the most up to date information. The goal is to set the right price from the start so buyers will move quickly and make an offer on your home.
Three reason why setting the right price is important
- The right price can help your home sell faster and for more money. The National Association of Realtors (NAR) has found that the longer a home stays on the market, without selling, the more likely the sale price is lower than the original list price. NAR found that a third of homes on the market for at least three to four weeks had their price reduced at least once. Pricing your home correctly in the beginning will decrease the odds that you will set on the market without any offers.
- You affect how the buyers view your home from the start. The price that you set on your home is your “price tag.” Pricing your home too high in the beginning may cause buyers to dismiss your home. They may dismiss it because they feel it is over priced. Buyers could also dismiss it because your home is out of their price range. But if a home is priced too low, buyer may shy away fearing there is something wrong with the house. If you are able to be like Goldilocks and set the price just right the buyer will be ready and willing to submit an offer to buy your home.
- The right price just might start a bidding war. When your home is priced comparatively with other homes in your market, it increases your chances of having multiple buyers interested in your home. If that happens those buyers may compete for your property. Competing buyers can drive up the price of your home. Even if you don’t have a bidding war, your home can still sell for list price.
It is easy to see why pricing your home correctly is important. By understanding market conditions and following the guidance of your agent, you can increase your chances of a successful sale. When selling a home, making informed decisions will help you to achieve your goals.