When selling your home, there are hundreds of decisions that you need to make, none more important than the list price. The asking price for your house can impact your bottom line and how quickly it sells.
To find the right price for your house, lean on your agent for their expertise. Real estate agents use data and comparative research to ensure your home is attractive to buyers. Let’s look at the dangers of improper home pricing and how it can affect the sale of your home.
Underpriced
Buyers may assume something is wrong
Buyers look at a lot of homes when house-hunting and they are most likely aware of the medium price in their desired area. So when they see a home way below the average asking price, alarm bells may go off. A home severely below the average can signal potential issues to buyers, like outdated interior or future costly repairs. So while it may seem counterintuitive, an unsupported low price can often scare away buyers rather than entice them.
Decreases your future buying power
By underpricing your home, you are unfairly hurting yourself now and in the future. First off, you are potentially leaving money on the table. That money could have helped with your move or paying off your new home. And by pricing your home so low, you are decreasing your future buying power, meaning it will be harder to buy a home in the future.
Overprices
Turns buyers away
This one is obvious, but when a home is too expensive compared to similar homes, buyers tend not to bite. Buyers enter an area with a set budget for their desired area. If a home is way above their budget and way over the other homes without any evidence to back it up, buyers tend to look for their dream home somewhere else.
Sits on the market for longer
With an overpriced home, expect to wait longer. A home priced way above others in the neighborhood may turn buyers away, leading to more time on the market. Even after all that, you might be driven to drop the price later to re-ignite interest.
Market value
This is the sweet spot. Backed up by research and analysis, pricing your home right can lead to a smoother and quicker sale.
Attracts more buyers
Buyers can recognize a good deal. So when a home is priced fairly, within their desired neighborhood, and within their budget, they are more likely to pursue it. This can even lead to a multiple-offer scenario. So, rather than trying to game the system with a low asking price or asking for too much, make sure that your property is fairly priced.
To find the right price for your home, lean on your agent for their expertise on:
- The value of homes in your area
- The condition of your house
- Value added by any updates you have made
- Current buyer demand
How agents price
An experienced agent always comes prepared when pricing your home. Real estate agents utilize a Comparative Market Analysis, or CMA, when researching a fair price. CMAs involve thorough research into similar home prices in the areas, features of your home, and other factors that can affect price.
Bottom Line:
Don’t pick just any price for your listing. Trust your real estate professional to help you find the perfect price for your house.
