Setting Your List Price
Selling your home is hard work. Pricing it can be one of the hardest things to do. To set the correct list price, you have to do your homework. But just doing your homework isn’t the end of setting a price; it’s also important to have a pricing strategy that works for your market. Here are four techniques that might help you sell your home:
1. Supply and Demand. When a home is overpriced, be sure that the market will correct the issue. Often, when a home is underpriced, the market corrects that issue as well. Consider aggressively pricing your home. Sometimes, this results in multiple buyers competing for your home. Often the owner gets as much or more for the home than what one would have originally listed the home for.
2. Set a Price for Your Competition. Do your homework and look at the homes of similar size, location and age. Once you know what your competition is, and the list price of those homes, beat your competition in price and value. All things being equal, buyers choose the lowest price.
3. Pick a Specific List Dollar Amount. If you list your home at $350,000 or $400,000, buyers may assume that you picked a dollar amount and threw the home on the market. However, if you list your home at $351,275 or $401,560, the buyer will probably assume the house price has been carefully calculated. Of course, you should have a comparative market analysis to back up this list price.
4. Don’t Miss the Search. It is not uncommon to list a home at a price slightly below a round figure. For example, listing a home at $349,000 instead of $350,000. The fact is buyers and real estate brokers search for homes in a range of price. Thus, if I began a home search for my buyers, and the range of my search was $350,000-$450,000, I would miss the $349,999 listing. By knowing the range in which buyers are looking for in your neighborhood, you can list your home for maximum exposure.
When the offers come in, take each offer seriously. Even though an offer may seem low, there’s always room to negotiate. My advice is never reject an offer out of hand. Try to keep your sale unemotional. After all, you are selling an asset. Don’t be offended by the offer, even if it is low or criticizes something about the home that you cherish. Don’t forget that your goal is to sell!