Setting a Price & the Dangers of Overpricing
In the act of Selling, setting the price is one of the most important decisions you have to make. Today’s Buyers are more educated than ever with access to recent sold information and market conditions. Determining the proper asking price for your goals works to your advantage for a number of reasons including:
Other Realtors will be more likely to show a property priced appropriately for the market
The right qualified Buyers are looking at your property
Proper pricing results in more activity
More activity can lead to competing offers
Competing offers can lead to more money for you!
The opposite is true for over-pricing a home. Many Owners believe that they can start with a higher than market-value price and then come down later. This can be done, but there are some dangers in this reasoning. As soon as a house comes to the market, there is a lot of activity surrounding it. There are a number of Buyers looking in specific areas for houses to come to market and if the house is overpriced, they may be leery of going to see it. This initial period in the listing is when you will have the most activity for your home. The longer your home is on the market, the more the likelihood that a stigma will be attached that “If it hasn’t sold by now, something must be wrong with it.” As well, if your home is over-priced at the start, the right qualified Buyer may not see it as it is priced out of their range.
Determining the right price to list at is a fickle balance. My experience and local market knowledge will assist you in setting the right price the first time and getting the top dollar on today’s market.