Why Pricing Your Home Right the FIRST Time Matters
When looking to sell your home, there is no question that the list price is the most important detail. You can do all of the renovations, updates, landscaping, and marketing in the world but if your home is not priced correctly it will likely not sell. At least, not at the speed you probably would like.
My next statement may upset a few sellers out there, but it needs to be said. Your home's amenities do NOT determine the market value of your home. The demand of buyers determines the market value of your home.
The good news is we are in a seller's market. Which means there is a saturation of buyers looking in a low inventory market. Because of this buyers should, and often are, fighting over homes for sale in a bidding war. If you aren't getting any offers, you may want to reevaluate your price. If your home has been sitting on the market more than 30 days without any offers, chances are you are over priced. If foot traffic is low to none for more than a week or two, you are over priced. There is no reason in this current market a listing should be sitting untouched unless it is overpriced.
I often hear seller's think that they should price their home high to leave room for negotiation. That's what all buyers do right? They want to try and haggle to get the lowest price they can. To an extent, that is true. However, buyers also don't want to deal with long, drawn out counters back and forth. Most buyers won't even bother with a listing they feel has a high listing price. They will wait until the seller decides to lower the price before they mess with it or they'll wait until another home like it pops up on the market. Sellers note, the longer a home sits on the market, the less negotiation power you have and the more the buyer gains. And this method often discourages fast acting on a buyer's side.
Here is the thing about listing it right the first time. It attracts immediately. And because inventory is so low, I don't just mean one buyer. It usually attracts a few. With a few eyes on it you could land yourself in a multiple offer situation. You know what that usually ends in? A full price offer, if not more. Seriously. That isn't a rare occurrence. Not only that but buyers know deals don't last long and they want to act fast. Which means you will likely be seeing offers within days, if not hours, rather than months. It may seem a little counter-intuitive to not price the property at the top dollar, but it usually ends with much better results.
With all that being said, it is also important to note that the first offer on a home is usually the highest. How do you want to set yourself up to make this "highest", the most profitable? By pricing at a high number that will deter buyers or at a competitive price that attracts them?