Setting the right price at the beginning of the listing can mean the difference of thousands of dollars in the end. Here is why:
A home generates the most interest when it is fresh and new on the market. Buyers who have been shopping will recognize a well-priced offering immediately and will rush to see it in the early days on the market. In today’s highly competitive selling market, early offers tend to be at or above asking price.
Sellers are competing for the same buyers in a given area. By being the most interesting offering in your price category, you are most likely to win the best qualified buyers in your market. Well qualified is defined as people who are preapproved to purchase a home at your set price. These buyers have done their homework and are ready to give full market value, sometimes a little more to win the property that best fits their budget, tastes and lifestyle. These are not bargain hunters who are looking to negotiate a steal on a stale listing.
A stale listing or a home that sits on the market too long has clearly been priced incorrectly. Even if a correction is made and the price or condition is adjusted, buyers will scrutinize your offering and your price and will be less apt to offer full market value. Savvy buyers know that if it has been on the market more than a few weeks it is overpriced and will start the bargaining at a discount even if the seller has already made price corrections.
Clearly, a home seller will receive the highest and best offers at the beginning of the listing period. So how do you determine the “sweet spot”? Getting the price right is a combination of art and science.
By evaluating properties that have recently sold that are closest to yours in size, style, location and condition, we can see what buyers have been historically willing to pay for a similar property.
An adept and experienced real estate professional can then evaluate function, differences and current market trends to adjust the value and determine the most likely price range for your specific property.
A review of the competition will likely show you where in that range to position your offering as the most exciting value in the area. This will have buyers flocking to your property, cash in hand, ready to sign the contract. Think you might be a little low? The market will always correct itself. If you price at the lower end of your range, competing offers will drive that price back up, sometimes over where you would have priced it at the upper end of your range.
The price is only one piece of the puzzle, however. How a property is then prepared and presented to the market, the marketing and exposure strategies employed and the number of buyers reached with a given marketing plan all contribute to your success and bottom line.
Choosing the right agent with the right marketing strategy such as ours will net you more money in your pocket. Look for an agent that has a comprehensive plan that starts with properly preparing your home for the market, presenting it well, exposing it to a wide audience, and then has a strategy to negotiate and navigate through offers, inspections and closing to make sure your interest and your bottom line are protected from beginning to end.