Every home seller wants to get the most money possible when selling their home, especially considering that as much as $500,000 in profit can be earned free of federal taxes. So why not price your house to the moon and see what happens? You can always reduce the price later, right?
Well, there can be a few problems with pricing your home too high. First off, if you price a home too high and then slowly start bringing the price down – and down, and down – when there is no activity on your listing, buyers are going to notice. The time on the market becomes an issue and buyers start to wonder what the problem is with your listing. Your home appears stale, like there is something wrong with it. When your home first hits the market, you want it to seem like a good deal, not cheapened goods. Would you feel an urgency to buy a home that had been listed 180 days? Probably not.
It is crucial to set a realistic price right out of the gate. This way you get solid, qualified buyers right up front and create competition for your home. And when you have competition, you usually get the best price and terms – not when your home has been sitting on the market for months.
To set a realistic price on your home, consider these tips:
- Do your due diligence. What have houses like yours sold for in your area and neighborhood in a reasonable time? And what were the original list prices of those homes? I will help you with that information.
- Compare your home to what is currently listed on the market. Be realistic in terms of condition, age, amenities, and pricing. Understand why your home is getting passed over and make sure your home is priced competitively with others currently listed on the market.
- Be an assertive seller, but don’t overplay your hand. Remember, the little extra money you hold out for may not be worth the six months or year of mortgage payments you may be making while you wait on a buyer.
I help buyers with homes in the Oklahoma City metro area every day. I can provide you a realistic estimate on the value of your home, and provide ways to market your home to the widest number of potential buyers. And you have to do your part – make sure your home is ready for showing and is priced realistically for the market.