The Do's & Don'ts Of Pricing Your Home

Pricing your home correctly is an important step in the process of selling your home. A home that is priced too high may sit on the market for an extended period of time and potentially turn off buyers, while a home that is priced too low may sell quickly but leave money on the table. Here are a few things to consider when pricing your home:

  1. Research the market: Look at comparable homes in your area to get an idea of what similar properties are selling for. This will give you a good idea of the current market value of your home.

  2. Consider the condition of your home: The condition of your home can affect its value. If your home is in excellent condition, you may be able to ask for a higher price. If there are repairs or updates needed, you may need to adjust your price accordingly.

  3. Think about your motivation to sell: Consider your reasons for selling and how urgently you need to sell. If you need to sell quickly, you may need to price your home slightly lower to attract buyers.

  4. Consult with a real estate agent: A real estate agent can provide valuable insights and expertise on pricing your home based on their knowledge of the local market and experience with similar properties.

By taking the time to research the market and consult with a real estate agent, you can arrive at a realistic and competitive price for your home.

The Importance of Proper Pricing:

  1. Attracting buyers: A home that is priced correctly is more likely to attract buyers, as it falls within their budget and is considered a good value for the price. A home that is priced too high may turn off potential buyers, as it may be out of their price range or not considered a good value for the price.

  2. Maximizing your profit: Properly pricing your home can help you maximize your profit from the sale. If you price your home too low, you may sell quickly but leave money on the table. On the other hand, if you price your home too high, it may sit on the market for an extended period of time and potentially sell for less than its market value.

  3. Selling efficiently: Properly pricing your home can also help ensure a more efficient sale. A home that is priced correctly is more likely to sell quickly, allowing you to move on to your next adventure without unnecessary delays.

What really matters is how your home stacks up against the others currently offered for sale and recently sold in your neighborhood. Buyers will be comparing.

Common Reasons for Overpricing:

  1. Emotional attachment: If you have a strong emotional attachment to your home, you may be reluctant to let go of it for less than you believe it's worth.

  2. Unrealistic expectations: You may have an unrealistic expectation of the price your home will fetch on the market, based on personal factors such as sentimental value or the amount of money you have invested in the property.

  3. Lack of market knowledge: You may not be familiar with the current market value of homes in your area and may be tempted to price your home based on outdated information or your own perceptions of value.

  4. Pressure to sell: If you are under pressure to sell your home quickly, you may be tempted to set a higher price in the hopes of attracting more buyers.

  5. Misguided advice: You may receive misguided advice from friends or family members who encourage you to set a higher price for your home, or from a real estate agent who has a vested interest in securing a higher price for the sale.

By taking the time to research the market and consult with a knowledgeable and experienced real estate agent, you can avoid the temptation to overprice your home and set a realistic and competitive price that will attract buyers and help you achieve a successful sale.

Dangers of Overpricing:

  1. Longer time on the market: A home that is overpriced is more likely to sit on the market for an extended period of time, as potential buyers may be turned off by the high price and look for more reasonably priced options.

  2. Fewer buyers: An overpriced home may attract fewer buyers, as it may be out of their price range or not considered a good value for the price. This can limit your pool of potential buyers and make it more difficult to sell your home.

  3. Lower sale price: If your home sits on the market for an extended period of time, you may be forced to lower the price to attract buyers. This can result in a lower sale price than you would have received if you had priced your home correctly to begin with.

  4. Reduced profit: Overpricing your home can result in a reduced profit from the sale, as you may have to accept a lower price than you would have received if you had priced your home correctly to begin with.

The Role of a Real Estate Agent in Pricing:

  1. Research the market: A real estate agent has access to market data and can provide you with information about Comparable Market Analysis (CMA) of homes in your area and their sale prices. This can help you get a sense of the current market value of your home.

  2. Consider the condition of your home: An agent can help you evaluate the condition of your home and consider any necessary repairs or updates that may affect the price.

  3. Negotiate with buyers: A real estate agent is skilled in negotiations and can help you get the best possible price for your home.

  4. Offer guidance and expertise: An agent has experience working with a variety of homes and buyers and can provide valuable guidance and expertise on pricing your home based on their knowledge of the local market.

An agent has NO control over the market, only the marketing plan. Never select an agent based on price.