PRICING YOUR HOME

Author: RE/MAX We Sell Paradise

You want to sell your home for the highest possible price.

Pricing your home can be the single most important factor when you are selling your home.

The question is, what is pricing? Pricing is all about supply and demand.

What do home buyers care more about than “location, location, location?” The answer is…” price, price, price!” The first thing buyers look at is the price. It doesn’t matter how perfect the house is; if the price does not fall within the buyer’s budget, it will be a big “NO.”

Some agents come in, suggesting an unrealistically high sale price, called “buying the listing.”

They know the price is higher than the market value, but they use an inflated price to entice a seller to list with them. When the seller is locked into a contract and the home is not selling, they lower the price.

Overpricing a home, in any market, is the kiss of death. Buyers are much more educated than they were in the past. They are online studying and gathering their data. They know what homes are selling for and probably have a fairly good idea of how much yours is worth in this current buyer’s market.  Properties correctly priced are in high demand.

Listing a home above market value will cause it to “sit on the market longer” and make buyers wonder why it has not sold; there must be something wrong with the property?

Other agents underprice their listings. After all, it takes a lot less work to sell a listing that is priced thousands or even tens or hundreds of thousands of dollars under the market value. There is nothing wrong with underpricing a home when the sellers are in a hurry to sell, and they know the price is well below the market value. But to mislead a homeowner into believing that a low price is the “market” price is dishonest and unethical.

At RE/MAX We Sell Paradise, our goal is to work with you to achieve a “right-price” for your home. We will prepare a comprehensive market analysis for your property, looking for the final sales price of similar properties that have sold in your neighborhood, taking market increases into account. We will closely examine where your home differs from these properties and adjust accordingly. Our goal will be to determine the best price for your home in today’s market. Of course, we cannot know how the market will react until the house is listed. We may have to adjust, and it is crucial to do everything we can to price it competitively from the start.

Frequently sellers are tempted to “try” a higher price to drop the asking price if it does not sell. It seems logical, but unfortunately, it tends to backfire. Studies consistently show houses that sell before their first price drop tend to sell for more per square foot than those that started higher and are then adjusted. It seems counter-intuitive, but you are more likely to walk away with more cash if we price the house competitively right away.

A fast offer is not a bad sign – especially if the first one you receive is full price. If a buyer wants your home, they will make a competitive offer right away. Do not hesitate to accept the first offer. It could be the best one you will get. Plus, a full price offer is a sign that you priced your house right/correctly.

In the end, the seller can ask whatever they want to ask for their homes. Just remember, overpriced homes do not sell in any market!