You can spend countless hours preparing your house to sell but unless you price it right it may be sitting on the market for a very long time. Gone are the days where you can list your property on the high side, hope an offer comes in and end up meeting in the middle. In most areas of the U.S. we are still in a buyers’ market which means as a seller you need to make your home as appealing as possible if you want to get it sold quickly and for top dollar. This starts with where you price your property.
With information more readily available then ever, buyers quickly know what has sold and for how much in a given area. Each property on the market will be compared with any other comparable home in the area. Sellers always think their home is nicer or in a better location than everyone else and want to list for more than it is really worth. But if you out-price your market, you will create far less demand for your home, and anyone who may have been interested at a lower price will have moved on.
The demand creates value for your home. If you list your property for $200,000 when it should really be at $179,900 you may have some showings but probably no offers. The longer the home sits on the market without any activity, the more desperate you will become and the more the home will lose its appeal. On the flip side if you list the same property for true market value, this will attract prospective buyers and create demand. The high demand could lead to two prospective buyers to engage in a bidding war and push the price up. You are selling the same property but what number you list it for will have a direct impact on what it eventually sells for.
Another thinking may be to list your property for $200,000 and lower the price down the road if you don’t get any activity. However this strategy can result in problems as a home gets stale and loses its appeal once it has been on the market a long time. Buyers start thinking something is wrong and offer lower than the list price if they see it has been on the market for 60-90 days. To get the most attention you need to start your new listing with the right price right off the bat instead of adjusting it down the road. First impressions matter even when dealing with real estate.
A good realtor and a good initial listing price can make all the difference in getting your desired sold price or having to wait months for an offer to come in. Most often the right list price from the beginning will maximize your bottom line!