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Pricing your home right the first time around is the single most important thing we can do to assure that your home sells within, or faster than, the current average selling time frame for your market, and for the best price.
Pricing your home right the first time around is the single most important thing we can do to assure that your home sells within, or faster than, the current average selling time frame for your market, and for the best price.
A property that is priced close to the market value generates the greatest amount of interest from qualified buyers.
If your home is priced above the market value, then you won’t attract prospective buyers who would otherwise be prime candidates for your home.
So let’s get straight into A few risks of pricing your home too high:
1) Your home will be listed beyond the search criteria of potentially qualified buyers. When buyers are active on the market searching for a home, they most likely will have an automated listing alert set up, which will notify them via email when a new listing hits the market that fits the criteria they are looking in. If your home is priced higher than what it’s actually worth, many buyers who have set up a search with a price bracket within the range that your home’s value actually falls into, won’t even get notified that your home hit the market. So you are missing out on prime buyers who would be perfect candidates for your home
2) Other Comparable homes in the neighborhood that are priced accurately will appear more attractive to buyers, potentially actually helping to sell competitive properties. If there are other homes that are similar in size and similar in condition in your neighborhood that are priced accurately, whereas yours is priced too high, buyers will see more value in the other homes and will be more apt to submit offers on those homes, while your home sits on the market.
3) May send the message to buyers and their agents that you are not truly motivated to sell.
4) Fewer agents will actively promote your home as a value to their prospective buyers. Buyers look to their agents for advice as to what homes have more value or are better buys, and agents will direct their buyers to homes that are listed accurately over homes that are overpriced.
5) All in all, fewer buyers will consider your home, resulting in fewer offers.
6) Lastly, marketing time is prolonged, and initial marketing momentum is lost
Let’s talk about The Significance of Timing .
When your property is first placed on the market, it attracts immediate interest from the real estate community and from potential buyers. The first few weeks of coming on the market is your home’s prime selling time.
Here is what happens: As a property comes on the market, there is a backlog of existing buyers who have been actively out in the market searching for their perfect home. In the first few weeks that your house is on the market, interested buyers will be excited to see if your home is what they’ve been searching for. If your home is priced right and shows well, you have the greatest opportunity to sell your home during these first few weeks.
Because during that time, virtually all existing active buyers will have viewed your property. After that time, interest in your property drops as you wait for new buyers to actively enter the market.
A few things to keep in mind about buyers:
• Buyers understand value – buyers are well educated on the relative prices of properties, and will select a property that meets their sense of value.
• As buyers research the market, they quickly gain an awareness of the value of different homes and the asking prices.
• Through their agents, buyers will also have access to comps of sold homes in the neighborhood which helps them price out their offers
A property that is competitively priced:
• Takes advantage of the prime marketing momentum that occurs when the property first comes on the market
• Sends a message to buyers about your motivation
• Generates an increased number of showings & an increased number of offers
Sierra Roth
REALTOR ®, BRE #01950753
M: 209.629.7573
