Pricing your home to sell fast requires knowledge of your local real estate market trends.
Market trends affect home values and point toward the number of buyers there are for the amount of inventory on the market. All of these things need to be considered when pricing your home to sell because it will most likely determine the strategy you choose.
If you are thinking about selling and wondering what your home might be worth in today’s Naples area real estate market, Call 239-307-8500 or use our Instant Home Value Estimator that will email you an automated valuation in 15 seconds. We will follow up with you once you receive your estimate.
This is where the rubber meets the road.
Price your house appropriately and it will sell quickly for the most amount of money the market will bear. Overprice it and be ready to show your house for a very long time while facing price reductions along the way. Undoubtedly, you’ve heard this before and it is not realtor speak for “price it low so that I can earn a quick commission.”
The reality is that selling a home is no different than selling any other commodity. Buyers seek the best product for the best price. They compare homes just like they do items in a store and will choose the one that offers the greatest value for their dollar.
So what factors should you bear in mind when deciding on an asking price?
• Are you in a buyers market or a sellers market?
• What are the prices at which comparable homes have sold, how long were they on the market and were there any price reductions between when the property was listed and when it sold?
• How do the locations of similar sold properties compare to your property?
• Does the condition of your house rival the comparable sold homes?
• What is your pricing strategy?
There are several approaches to pricing a home and some work better than others depending upon the market you are in and level of demand for your particular home. The most practical method is to price the house at fair market value. As the graph to the right shows, if the house is priced at fair market value, it will attract in the greatest number of potential buyers. However, it also shows that if the house is overpriced it will entice the fewest number of people looking to purchase a home. The reason for this is that the majority of home buyers look at a lot of homes on the internet and in-person and they quickly learn the price points that homes sell for in a given condition in a defined location. Pricing a home too high also attracts the wrong buyers during the time when it is initially listed and this is a big problem because you get the greatest number of showings during the initial 3 weeks of the home hitting the market. All of the people who have been looking at homes in that price range are waiting for one to come on the market that they want to buy, so they are among the first to make an appointment to see it. They are then disenchanted with the overpriced house and wait for something else to come on the market. Meanwhile, buyers who would have purchased the home had it been priced correctly have moved onto other properties and end up purchasing one of those. Essentially overpricing a home helps other houses sell.
Another tactic is to under price a home to tempt the maximum number of buyers in hopes of getting multiple offers and driving the price higher. This can be very effective is there is high demand for your home, but can backfire if the level of demand is miscalculated.
You should always get a detailed home valuation before determining a pricing strategy.
Whatever pricing strategy you choose, don’t get caught in these common seller traps:
• Building in wiggle room for fear of getting a low offer. (Price the house too high and you won’t get any offers.)
• Choosing the realtor who gave you the highest price opinion. (This agent knows that he will get you to reduce the price of your house over time as you get worn down and in the meantime he will pick up a few buyers by advertising your home. The trick is that he will use your home to attract the buyers, but he will sell them other properties.)
• Consciously overpricing the house and refusing to lower the price hoping that there is some uneducated buyer out there who will pay you what you want. (Thanks to all of the real estate websites, there are no such foolish buyers.)