Pricing your Home
Getting ready to put your house on the market? Setting the right price is one of the most important secrets to a successful sale. Price it too high and chances are it won’t sell.
Although you may have decorated lovingly or renovated extensively, those improvements may have only a small effect on market value. In fact, personalized decorating can slow a sale unless the style has wide appeal.
The right sales price is based on several factors: size of the house and its special features and amenities, recent home sales, as well as demand for homes in your area and prices of similar homes currently on the market.
Sometimes sellers are tempted to test a higher price to see if they will be lucky enough to find a buyer willing to pay. Experience shows this strategy rarely pays off, and may scare off legitimate buyers. Asking the right price from the start avoids the many dangers of overpricing and usually results in a higher sales price in the end.
Here are more reasons why it’s dangerous to overprice your home. Most activity on a listing comes within the first 30 days. And overpricing can eliminate a whole class of qualified buyers – causing you to miss out on pent-up demand. Most buyers know how high they can go and won’t look at homes priced above their ceiling. Buyers who can afford the price won’t waste time with an overpriced property. They know they’ll get more house for their money elsewhere.
Overpricing helps sell more competitively priced homes. Buyers who might stretch their best offer become frustrated when they can’t buy at fair market value. If you do get a contract, it may fall through because of a low appraisal. National Association of REALTORS statistics show that the more overpriced a home is, the less the seller ends up realizing in the end because it becomes seen a stale inventory and that suggests problems – even after the price has been lowered.