Choosing The Right Price For Your Home
The price at which you choose to list your home is a very important piece of the puzzle. List too high and your listing could become stale. On the other hand, list too low and you could be leaving money on the table. Your listing will receive the greatest amount of enthusiasm during the first two or three weeks on the market and most homes will sell for the highest price during that period. Making sure your home is priced reasonably right from the beginning will ensure it’s receiving all the excitement a new listing should.
Top Reasons For Pricing Your Home Realistically
1. Time
Pricing a listing realistically right from the beginning increases the chance for a timely sale with less inconveniences and greater monetary terms. If you wait and reduce the price later in the listing period your home will have become stale and will not attract many new potential buyers. On average, the longer your home stays on the market, the less valuable it becomes.
2. Competition
With the availability of Realtor.ca more buyers are able to educate themselves on the market without even leaving their desks. They will be able to tell what is priced fairly and what is not. Further, fewer real estate agents will show your home because they know they can get a better value for their clients. If anything, your home will be used to help sell your competition.
3. Reputation
When your home is not priced properly it will most likely remain on the market for a long time. Buyers, aware of a long exposure period, will be hesitant to make an offer because they fear “something is wrong”. If the buyers do decide to purchase your home they will usually come in with an unrealistic offers and won’t have any fear of competing buyers coming along.
4. Inconvenience
If your home is priced inappropriately it may not sell which could mean you will end up owning two homes – the one you already purchased and the one you’re trying to sell. This can prove costly and worrisome, as well as inconvenient.
In the image above, you can see that the demand for you home is directly related to your listing price. If you were to price your home at fair market value, you should expect to get about 60% of the potential buyers for your home to actually come and see it. The higher you price your home, the less buyers you can expect to come and take a look. A lot of sellers tend to say “it only takes one buyer,” and while that is certainly true, the odds of the right buyer coming along decreases significantly. It’s all about giving you best odds to succeed. If you plan on overpricing your home “just to test the market,” then you must be aware of the risks.
