One of the most important decisions you will make when selling your home is setting the right listing price. That can be far more complicated than it sounds. Mostly, this is due to the fact that your original listing price has the power to “make or break” your home’s chances on the market. If you price your home too high, many buyers will identify it as out of their price range, and won’t even bother to see it. But, if you set the price too low, you stand to lose thousands of dollars.
Overpricing Your Home
Overpricing your house can alienate many potential buyers. However, there are still sellers who consider setting a high listing price in hopes of getting lucky. They’re gambling on the chance that some unsuspecting buyer will be so enamoured with the home that they’ll want to buy it- no matter the price tag.
That rarely, if ever, happens.
Instead, the listing often languishes for months on the market because its listing price is conspicuously higher than its market value.
Think about it. If you see two similar homes for sale, but one is priced $35,000 higher than the other, what would you think? Chances are, you would react in the same way as the majority of buyers and cross the overpriced home off your list.
Many buyers, who might otherwise be interested in the property, won’t even consider looking at it. A price tag that doesn’t match the realistic market value of a house is a sure way to alienate potential buyers.
Unfortunately, it just gets worse. In these situations, the overpriced home ends up sitting stagnant on the market for several weeks or months. After a certain amount of time, the seller eventually realizes that their price needs to be adjusted down. While this does help the situation, it can’t fix the damage that has already been done. The attention generated for a “new listing” is gone, and your old listing now has to struggle to be noticed.
There’s a better way…
Setting your list price at or near the market value is much more likely to generate interest from qualified buyers and maximize the price you get for your home.
That market value may even be higher than you think!
Interested in learning more about your house’s market value? I’d be happy to chat with you!