Pricing is all about supply and demand. Pricing your home correctly can be the single most important factor when you are selling your house. Sellers often want to price their home higher than recommended, and many real estate agents go along with the idea to keep their clients happy. However, the best agents realize that telling the homeowner the truth is more important than getting the seller to like them.
Many sellers say that they want to price their home high to have a ‘negotiation room'. But this actually lowers the number of potential buyers that see the house. We need to understand that limiting demand like this will negatively impact the sales price of the house. If you overprice the property, the property may lose its freshness after the first two or three weeks of listing. ‘I will lower the price later’ approach can paint a negative image in potential buyers’ minds. When they see a price reduction in the property, they might feel that something is wrong with the house or the seller has unrealistic expectations. This might even distract the buyer rather than enticing them. Pricing your home right from the beginning will eliminate these challenges.
Whether you are working with a real estate agent or doing it on your own, setting the right asking price is key. Compare the homes in your area and set a realistic price accordingly. You might feel that your house is worth more, but you need to have a realistic approach. If you end up getting more or less price for your home will also depend on whether you are in a buyer’s market or a seller’s market. If it is a seller’s market, the demand will be more and you will see more buyers competing for the same property. In such a case you can price your home on a higher side. The price that you get for your property will also depend on how well you have staged and modernized your home. It is always good to consider these factors before pricing your property. Doing a proper valuation will help you sell your property quickly and at the price, you are looking for.
In today’s time and age, many buyers search the listings online. Most of the buyers search for homes using a price range so if you price your home beyond a reasonable price, buyers might take a longer time to discover your listing. It would also impact the demand for your home.
Taking longer to sell can cause other financial consequences if you are in a hurry to sell your home. Make a reasonable assessment of the value of your property. Pricing the property correctly is critical for the deal. A good real estate agent can help you in deriving the right asking price as he is aware of the market trends. When you are ready to dive deeper into your home value, a real estate agent can help you do a comparative market analysis to determine the right price for your property.