When it comes to selling a home, one of the most difficult pieces of the puzzle is pricing. And as a Realtor, it can be one of the most difficult conversations to have with clients.
When you sell a house, the thing that will attract buyers more than anything else is the price. Buyers and Realtors use the price to sort out potential properties when they search MLS.
Many buyers want to be in a certain neighborhood or a certain area for a certain price. If your home is priced higher than all the other homes in the neighborhood it can be very difficult to sell.
Most buyers have expectations for what certain areas cost and if a home is significantly more than that expectation, many buyers may never consider that home or even see it. You may also run into an appraisal issue if the house is priced to high above market value.
Different types of markets will change how you sell a house. In a seller’s market (which we're in now) there is much more flexibility with asking price. I may actually price homes a little high in a seller’s market because there is very little competition. In a seller’s market, many buyers are looking for homes, but there are only a few homes for sale. Even if I price a home a little high, buyers will still look at the home and may offer less than asking, but still make an offer.
In a buyer’s market everything changes when you sell a house.I may price a home slightly below what I think market value is. I may do this because I don’t want to get caught chasing a decreasing market. When chasing a decreasing market, you may try to lower your price to get buyers, but you can’t seem to lower it enough to catch the decreasing prices.
Your home ends up on the market 3 months or more and it becomes stigmatized. Whenever a house is in the market for an extended period, buyers automatically think something is wrong with it. Even if the price is great and the home is perfect, buyers will think there must be some reason no one else has bought it.
If you have thought about listing your home, I would love to offer you a free market analysis on your property. Give me a call and we can discuss your options!
Hope this was helpful.
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