Whether you are buying or selling, any part of the real estate market can be stressful and overwhelming if you do not know the proper strategies. With selling, one difficult aspect is determining a price range that works for both you and your Realtor while being true to the home’s value. To have a better grasp on how to set a price range for your home, you will need to talk with your agent and determine the true value of your home. In addition to this, you will want to make sure the house can get off the market soon as we know that the longer a house is on the real estate market, the less likely it is to sell at a good price. Here are some strategies to keep in mind when pricing your home to sell.
Appeal To the “Heard Mentality”
With the real estate market having high stakes a buyer does not want to be the only one interested in a house. If they feel they are the only ones, they may start to question why is there something wrong with the house? Am I missing something that everyone else is seeing? To avoid this, try pricing your property on the lower end of the value range. This will stimulate interest among more than one buyer and create a herd mentality. This strategy is also a good one if you are trying to sell your home quickly.
Price your home to Be Found in Real Estate Searches
When it comes to buying a house, buyers will tell their agent that they want a certain type of home in a neighborhood under $500K or any other amount. Their Realtor will then set up an automated buyer search in their local database for homes with the qualifications asked for. However, if a home is listed at $510K in that example then that buyer will miss out which is why I recommend that you don’t have a high list price out of the gate. Knowledgeable and experienced agents will help set these search parameters but include properties that are listed somewhat above the price ceiling set by the seller. Sellers should know that buyers believe home prices are flexible, and buyers consider homes that are slightly above their looking range if they are a good match. By listing slightly higher or lower than intended you will attract more interested potential buyers which you can help you negotiate down the line.
Don’t Get Creative with Your Asking Price
When selling a house, some sellers can get ahead of their selves and try to get an exact price amount of what they want. For example, you can have a home that is valued between $750K and $800K, a seller could ask for $787,777. If a seller is asking for a specific price, then it will bring attention for no good reason. Buyers will question why the seller chose that figure and then wonder who the seller is and further investigate which could hurt the chances of your home being sold.
Work Out a Pricing Contingency Plan
The best-case scenario for selling a home is to sell at top dollar, and some sellers believe this is a possibility, so they set that high expectation. All Realtors have a goal of selling a home at a higher price or close to the seller’s desired range. They realistically know that those cases don’t always happen so a contingency plan should be made. By having a plan B on pricing, you will save time and help set appropriate expectations for selling your property.
Pricing Is an Ongoing Discussion
If you are selling your house, you should listen carefully to your agent's pricing strategy, as they have the experience and knowledge of what works and what fails. In addition, no matter what the strategy is, be prepared to have an ongoing discussion about pricing. The process is not a “set and forget” procedure as a lot of factors come into play and nothing can be anticipated. Whether you are buying or selling a home there will be obstacles you are not prepared for. If you can be flexible and react quickly to the market's fluctuations, you are more than likely going to get the best price with the least amount of stress.