The right price attracts strong buyer interest, generates competition, and often leads to the best overall outcome. The wrong price can cause a home to sit on the market, lose momentum, and ultimately sell for less than it might have achieved with better positioning.
Buyers search within price brackets.
Pricing just below a century mark (for example, $895,000 versus $900,000 or $1,995,000 vs $2,025,000) can expose the home to significantly more buyers.
The first week or two typically generates the most attention.
Proper pricing helps create urgency and more interested buyers. And, the home should be ready for viewing. There is no second change at a first impresions.
Understanding the Competition.
What’s on the market, what’s a pending sale, and recent sold’s.
Buyers Compare Homes Side-By-Side. Active listings are just as important as comparable sales. Staying on top of competing homes can make the difference in getting a buyer’s offer.
Creating Buyer Competition. A wonderful thing. and is always a goal if the market is right and the interest is there.
Pricing Nuances. Choosing a list price, or when to make a price change, can depend on the market. Our strategies may vary based on fast rising markets, stable markets, and declining markets.
Pricing Pitfalls to Avoid
Pricing Based on Emotion.
Sellers, and even real estate agents may price a home on their personal attachment. Owners often value memories and personal improvements more than buyers do.
Testing the Market With a Higher Price.
Not a good way to go in general. Losing those first two weeks of peak activity is risky. Overpricing early can cause the home to sit, then, buyers begin to wonder what is wrong with the property.
Multiple Price Reductions.
Not a good thing. Frequent price reductions signal weakness and can encourage buyers to wait for further drops…. or make lowball offers.
Letting Days on Market Grow.
Not a good thing. Days on market (DOM) is like public record, buyers and their agents can see how long a home has been on the market without selling.
Some Sellers Believe Pricing High Leaves Room to Negotiate.
In reality, this often reduces showings and buyer interest.