Pricing Your Home

Objective: Sell at the highest possible price

Real Estate Agents do not establish the price—the market does.  Agents have no control over the market—only the marketing plan.

Think about when you bought your home and ask yourself these questions:

  1.  What features attracted me to this home?
  2. How did the seller’s asking price enter into my decision making process?
  3. Did I compare the price of this home to others on the market at the time?
  4. Did I compare the price of this home to similar homes that had recently sold in the area?

Your potential home buyer will do these things even if you didn’t.  

To get the most money for your home, price it correctly, in the beginning, when it is fresh on the market.  Statistics prove that the longer a house is on the market, the less it will sell for.  The educated buyers of today know the value of a home before they make an offer.  They recognize a fair price and offer accordingly.  I would rather see a seller turn down a low offer than get no offers at all.  You actually end up with less money for your home if you overprice it, than if you price it at market value in the first place.

Homes that are overpriced do the following:

  • Minimize offers
  • Lower agent response
  • Limit qualified buyers
  • Lower the number of showings
  • Limit financing
  • Waste advertising dollars
  • Net less for the seller

It is very important to price your home at a competitive market value from the first. The market is competitive, so even over-pricing by a few thousand dollars could mean that your home will not sell. Interestingly, your first offer is usually your best offer. Remember, the role of the Broker is to sell the property, not the price. All the exposure in the world will not sell an overpriced home. A Broker’s enthusiasm for a high price that “you must have” will not sell the home. The market isn’t always kind, but the market is never wrong.