Pricing your home from the onset is both an art and a science. Achieving the optimal price is the result of both objective research into comparable properties and a gut feeling about your property and the current market.
The simple fact is, price is the number one factor that most homebuyers use to determine which homes they want to view. And it's important to remember that, although the price is set by you, the value of the home is determined by the buyer. Try to avoid allowing your enthusiasm to impact your better judgment, overpricing is a common mistake that can cost you in the end.
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What really matters is how your home stacks up against the others currently offered for sale and recently sold in your neighborhood. Buyers will be comparing.
Over-improvement & Need.
Purchasing in higher-priced area.
Original purchase price too high.
Lack of factual data & Bargaining room.
Move isn't necessary, & selling at assessed value.
Emotional attachment or opinion of family members & neighbors.
Most of the activity on your home will occur in the first few weeks. Pricing a home properly and then creating immediate urgency in the minds of agents and buyers is critical.
Buyers who have seen most available homes in their price range are waiting for the "right house" to come on the market. That's why if a house is priced right, it will sell quickly. The buyers are there waiting for
Don't start with a high price and the assumption that you can reduce it later. By the time you decide to lower the price, it may be too late, as interest will have already waned.
A major cause for concern is appraisal problems; overpricing can lead to loan rejections and lost time.
Even if your home is nicer than other homes in the same area, your house won't be picked for viewing if you set the price too high.
Buyers and agents become aware of the long exposure period and often are hesitant to make an offer because they fear something is wrong with the property.
Attracting the wrong buyers.
Fewer potentially qualified buyers will respond.
You might help sell similar homes that are priced low.
You could lose money as a result of making extra mortgage payments while incurring taxes, insurance and unplanned maintenance costs.
The role of a real estate agent is to provide you with a comparative market analysis (CMA), a comparison of the prices of recently sold homes that are similar in terms of location, style, and amenities. A CMA is performed by comparing previously sold homes in the area, and currently active homes to know your competition.
An agent has NO control over the market, only the marketing plan. Never select an agent based on price.
Whether you’re expanding your current home, upgrading your lifestyle, or investing in the future, HomesbyAli is here to guide you home.
