Pricing Your Home

You CANNOT under price your home!!!

That sounds silly at first, doesn’t it? When you really think about it, though, it makes perfect sense. Staying true to this motto will save you time, money, and prevent a lot of headaches during the sale of your home.

Today’s real estate environment is what is known as a buyer’s market. In a buyer’s market, homes are more difficult sell, which give buyers the advantage during negotiation. Some sellers simply scoff at this notion and continue to list their homes above market value.

The end result? The seller’s home stays on the market for 6, 12, or even 18 months and beyond, all while they are losing money and market value.

So where does the fact that “you cannot under price your home” come into play?

While market values continue to decline, your home essentially loses value every day it stays on the market. The faster you sell your property, the higher its value. Overprice your home, and it will sit on the market and keep losing value as it never sells. Even if you reduce the price of your home, it will never be worth what you should have priced it three months ago.

Another way to look at it is that the number of buyers is far less than the number of homes. Every buyer in every price point is looking for the best deal available. They’ve seen, either in person or on the Internet, every home out there that fits their criteria.

Price your home right, and these buyers will take notice as soon as it hits the market. You will most likely get showings in the first week, and have a great chance at receiving a serious offer. You may even get multiple offers, creating a bidding a war that drives up the price of your home as it is perceived to be a hot commodity.

Where is the proof? Take bank owned homes for example. Many banks list properties below market value just to build interest. After a flurry of showings during the first few days, the bank receives multiple offers, resulting in a sale at a price far greater than the original list price.

The concept is rather simple, but requires knowledge of your local market and a detailed analysis of the competition. Contact Vanessa to discuss how she can use this aggressive tactic to get positive results for your home sale.