When you go to sell your house, you always want the highest price. But you can’t just list your house for some crazy amount. That’s a good way to scare off potential buyers. Even though it’s a seller’s market and 46% of homes are selling for above list price, the best sales tactic is proper house pricing. Here’s what you need to know to sell your house without leaving money on the table.
Why Pricing Is Important
Do you remember the story of Goldilocks? When she came across the bears’ cabin, one thing was always too big, one was always too small, and one was just right. When she finally found the one that was “just right,” that’s the thing she chose.
Homebuyers are just like Goldilocks. They’re looking for their perfect house with pricing that’s just right. If it’s even the slightest bit low or high, it leaves potential to scare them off.
Too Low
Pricing your home too low is scary for your wallet. It means you’re leaving money on the table and letting your home go for a steal. Not only does it leave money behind, but it also limits your buying power on your next home.
From the buyers’ perspective, an oddly low home price could point to potential issues. A seller wouldn’t list their home for less than its worth if they weren’t trying to hide something, right? You might think a low house price would entice buyers into a fast sell, but that’s not always the case.
Too High
Right off the bat, pricing your home too high will immediately scare off potential buyers. Nobody (and I mean nobody) wants to buy a house for more than its worth. If you price your home above market value, there’s a good chance you’ll be sitting on the market for a while.
After you get nice and frustrated with your house getting zero attention, you’ll probably end up decreasing the price. A price decrease is another red flag for buyers. It could signal that something is wrong with the house, and the buyer really wants to get rid of it. It’s not a good look, even if it’s not the case for your home.
Market Value
When you hit that Goldilocks sweet spot, you get the best of all the possibilities. You get the most money for your home, it doesn’t stay on the market long, and you don’t leave any red flags for buyers.
Even better, pricing your home right at market value could even encourage a bidding war, helping you get even more for your listing. It might be a difficult line to walk, but listing right at market value is the best way to get the most for your house.
How to Price Your Home – Work with a Professional
Want to know the secret to pricing your house? Work with a professional! A real estate agent will be able to accurately price your home based on three key factors:
The value of your neighborhood
Current market demand
Your home’s condition
If you’re ready to list your house, always talk to a real estate agent first. You could be leaving money on the table or scaring off potential buyers! Get the most for your property by pricing it correctly.