How to Price Your Home to Sell for Top Dollar
Determining the right price to sell your home is not magic. If you understand the concept of supply and deman., then you realize that the "market" determines the value of your home. You as the seller must be able to objectively look at the market. And this can be difficult for some sellers, as they believe their home is unique or better than all the other in the neighborhood.
Homes priced right sell faster and for top dollar. If there are houses in your area similar in size and condition, the price that these homes sold for is your indication. You do not want to overprice your home, only to have no one to show it. What happens in this scenario is you will find yourself chasing the market, rather than leading the market.
The Market Determines the Right Price for Your Home
Real estate agents do not determine market value. We interpret it based on the available data. In a slow market, buyers actually determine the market.In a slow market you are competing with every other seller to get that buyer to purchase your home. As much as it pains us to hear this, "buyers really don't care what you paid for the house, how much you have invested in upgrades, that your home is unique or your financial situation".
I have had clients tell me "I need this much in order to make the move". I can understand this, yet what you need and what the market will bear, are two different things. Always look at the data. The numbers are in the data.
Another comment is "let's list high as we can always come down later". This is a poor strategy. Coming on the market over priced sends a signal to both the other real estate agent and buyer that you are an unmotivated seller. Pricing overmarket is not a good strategy. Buyers have access to the data. They know if a house is over priced. No showings equal no offers. And if you want to sell you will eventually have to adjust the price. Here is an indicationof an over priced home, if your home has been on the market for ten days and you don't get any offers, you are over priced. If the home is on the market and no showings, then the house is really over priced.
Choosing the asking price is not choosing how much you are going to get...you are choosing how long you want to wait to get what you are going to get. You have two choices, price it where it will sell or where it sits. Only you can decide which is best strategy for you.