It seems like something simple, but the price of your home is often the first thing they see that creates an impression in their mind. Some will say that based on your price, your home is out of their budget. Others will look at your home critically to decide if your home is worth the price you want for it. It’s important to price your home correctly in that perfect spot that allows you to get the most money possible, but also ensures that it will sell quickly, too.
Your home is precious to you, and there are many emotional memories attached to it, but when you begin the process of selling and pricing your home, you have to put those feelings aside. Selling your home is a business transaction, and if you ignore logic and what the market is telling you in favor of emotion, you will end up regretting your decision, and you might not even be able to sell your home.
Pricing your home for a price higher than its worth just ensures that it will sit on the market, and might never sell! With this in mind, here are some issues that come from overpricing.
Listings can actually expire, though you never want to see that happen. If your home is priced well it usually doesn’t happen. A good price point that is similar to homes in the area that are like your home will ensure that buyers become interested faster. We talk to a lot of homeowners that have had a listing expire, often times we will re-market the home, improve the price a bit, and the home will sell in a matter of days. We have one of the most advanced marketing plans in the area, this gives you the most exposure in the shortest amount of time.
The longer it takes to sell your home, the more stressful it will feel. This is even more true if you live in the home while you’re trying to sell it. It’s difficult keeping your home show-ready at all times for potential buyers. Everything has to be spotless, and look as perfect as possible, in order to impress buyers. Not only that, but the longer it takes to sell your home, the more hopeless it may feel for you. Everyone wants to imagine that selling a home is a quick and easy process, but it’s generally only the case when the home is priced correctly.
First off, the longer you own the home you’re trying to sell, the more mortgage payments you are going to have to pay. That’s an added expense that can be particularly taxing depending on your situation.
Also, there is the issue of what people think of your home, and how it relates to money. If you’re home sits on the market for too long, people begin to think one of two things.
- Something is wrong with your home
- You’re desperate to sell, so you’ll take a much lower price for your home
Either of these negative ideas are going to cost you time and money. In fact, perception can be such an issue that some people that have priced their home incorrectly end up pulling the listing and waiting to relist in hopes that buyers forget the first time their home was on the market.
You can list your home at any price you want, but when someone goes to buy your home they are going to have an appraisal. The appraiser is going to look at a number of factors to determine your homes worth. They will look at comparable homes, your neighborhood, the overall condition of the home, and any possible amenities you have to offer. If your price is wildly different from the appraisal, the mortgage lender can opt not to loan the money to the buyer. If they don’t want to give the buyer the money, you have the option of waiting for another buyer, and seeing the same thing happen or being forced to lower the price to whatever the appraisal is, or even lower if the buyer expresses concern about the idea that they were being overpriced.
You might be wondering what you can do to avoid pricing your home too high. The first thing is to work with a realtor that is familiar with your area. Before listing your home, your realtor should discuss with you how much your home is worth, and how much realistically you can get for your home. In some markets, if you list lower you end up getting more money because buyers end up bidding each other up. That’s what a good realtor can do for you. My team will ensure that you have everything you need to know to pick the appropriate price, so that we can get your home sold with as few problems as possible!
HERE ARE SOME TIPS I ALWAYS RECOMMEND WHEN PRICING A HOME:
VISIT AREA OPEN HOUSES
You need to know what is out there in comparison to your home so you know where your home stands. This is not the only issue that matters when pricing your home, but it’s one worth looking at. If all homes in your area that offer the same things as your home are being priced $50,000 less, buyers are going to look at those other homes first. Checking out open houses gives you a good idea about the pulse of real estate in your area, and that will help you a great deal in pricing, as well as solidify any expectations you have for selling your home.
DON’T USE THE INTERNET AS YOUR GUIDE
While most real estate websites offer a home pricing option that give you estimates of what a home is worth, you shouldn’t pay much attention to these when pricing your home. These estimates are nothing more than computer analytics and algorithms that price a home. While some agents such as myself spend lots of money on property valuation tools that will assist you in giving a “ball park figure” of what your home is worth, at the end of they day, it’s still only using public data. They don’t have real appraisers looking at each home and accurately pricing a home. If you want a general idea of what your home is worth, check out my Automated Home Valuation tool, if you want a more accurate number, give me a call or shoot me an e-mail.
PRICE MODESTLY TO SEE BIGGER RETURNS
If your home is in a good neighborhood, sometimes the best thing you can do is price it just a little bit lower. There is a good chance this will bring multiple offers, and with it, a possible bidding war. Giving the buyer the option of paying more for your home is always better than expecting them to pay more than they know your home is worth.
Sometimes selling your home is only as hard as you make it. Choosing the right price for your home will put you on a quicker and easier path to selling your home. I can help you find the right price point and I can help you to get your home sold. Ready to take the plunge? Contact Me today and my team will get to work on getting your home on the market and in finding the buyer for you!