Pricing a home for sale involves a lot of contemplation and analysis of your local market. It can be tempting to price irrationally high to make the most of your investment, but be careful, this can have repercussions, as well. As William Raveis Legends Agent, Phyllis Lerner, explains, you need to stop and think before overpricing your home. Her post originally appeared on her ActiveRain blog, which you can find here.
So, you are selling your home. But, you are deadly afraid of low-ball offers coming in. And therefore you think it best to tack something on to the estimated fair market value of your home, just to have a buffer for the anticipated back and forth negotiations! But, seriously, why would anybody want to over-price their home to counteract a low-ball offer?
Just look at this scenario. Pricing a home at or below the current market value will attract many more potential buyers, especially if it’s a home that shows really well. Therefore, you’ll most likely receive a higher number of offers. The moment buyers hear that there are other offers it will induce an increased sense of urgency causing them to fight over it (they really want your home… it shows well… it’s priced right).
Value pricing takes much of the anxiety and stress out of the home-selling process.
Nevertheless, many sellers still fear, even if they price their home for the market, buyers will still send them low-ball offers. Guess what… that is going to happen no matter what! But, a sensibly priced home will invariably also attract much more serious buyers that understand that they are competing with other motivated buyers. If a house is priced right this still happens. Buyers will compete for it. And the serious buyers will offer exactly what it takes to get what they want, leaving the low-baller in the dust!
Isn’t this type of no-nonsense pricing approach a much better idea? It entices… instead of turning potential buyers off… “you’ll catch many more bees with sugar than vinegar”… or so, the saying goes?!