The Price is Right

BLINDED BY LOVE Sellers often overestimate the value of their homes for emotional reasons. Sol Linero

The primary factor in selling your home is price. Who determines if the price is right? Would it surprise you to learn that it is the buyer? In order to sell a house, it must be priced to meet the buyer's criteria. How do buyers come up with the price range that they might be willing to pay? They shop and compare. So, we have to think like those buyers.

The first thing you will need to determine the right asking price is a comparative market analysis. We have to look at houses with similar amenities, size and location that have recently SOLD, those currently on the market, and those that were marketed for sale that did NOT sell. If a house sold, we know a Buyer and Seller agreed to that price for that home. Those currently on the market will be your competition, and those that did not sell were priced too high for what they were offering.

The "Goldilocks Effect"

We all know the story of The Three Bears and the very discriminating Goldilocks. Too big, too small, "just right." Too hot, too cold, "just right." Your home needs to be priced "just right" in order to get the most potential buyers interested. Thanks to the internet and HGTV, today's buyers are pretty savvy when it comes to pricing. Take a look at the chart below. We can see that overpricing will drive away potential buyers before they even view the home.

Another important strategy for pricing your home is to always price it in terms of round numbers. Never list for $xxx,900 or $xxx,999. People don't search for homes that way! If you are looking for a $200.000 home and the home is listed for $199,900 or $199,999, guess what. They aren't going to find your home even though you are basically asking $200,000.

The National Association of Realtors® compiled a short list of tips for correctly pricing your home.

We've talked about what TO do. Let's take a look at what NOT to do. Check out this video. Top Mistakes To Avoid When Pricing Your Home.

If you would like more information about this topic, please contact me.

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