To understand how much to list your home for, it’s important to know how sellers price their homes.
Here are 4 pricing strategies you can discuss with your agent:
- Very Overpriced
Everyone wants to get the most amount of money they can for their home, and your real estate agent
knows this, but overpricing your property could cost you when listing. Some sellers pick their agent
based on who will list their house for the highest price, which is an easy way for them to gain your
business, but bad for your bottom line. Far too often homes are priced 10 – 20% over market value and
this is not in your best interests! Because of this, if you over price, agents and buyers will make low
offers after your property has sat on the market for months. Another draw back of overpricing your
home is having to keep it in “showing” condition for longer than necessary. Instead of pricing your home
competitively for a relatively quick sale, there could be months and months of showings with no offers,
leaving you frustrated and impatient.
- Somewhat Overpriced
The homes that sit on the market are always overpriced homes. About 75% of homes on the market are
overpriced by 5-10%. If you are overpricing to leave room for negotiations, or truly believe your house is
worth the additional 5-10%, it will end up costing more days on the market and a lower price received.
It’s best to discuss pricing with your agent, they have experience pricing houses and will help you figure
out what is a fair market price for your home.
- Priced Correctly at Market Value
Real estate is all about supply and demand. If you have a home that is sitting on a sellers market, there
must be something wrong. Pricing your home correctly at market value will help your home sell within a
reasonable time-frame and very close to the asking price. Not to mention if the property is in good
condition with upgrades, bidding wars are entirely possible!
- Priced Below Market Value
Pricing your house below market value is a good strategy when you need a quick sale. These listings
normally attract multiple offers and sell very quickly at or above the listing price. Ensure that pricing
your home below market value is the best strategy for you – not for your agent. If a quick sale is
necessary financially or otherwise, pricing it below market value might be right for you!