Price It Right

In a sellers’ market, you would expect things to be easy for sellers, but it’s still a highly competitive market. The houses that sell the fastest are the ones priced right for selling. Sellers need to get attention from buyers, and the right price can entice the right buyer, but how do you know what the right price is? How do you set your home’s price with confidence? As Realtor.com explains:

“Move-in-ready homes with curb appeal and in desirable areas—and that are priced to sell—are especially likely to move quickly this spring.”

If you’ve done the work to make your house ready to sell, with all the curb appeal you can wring out of the property, the biggest factor to consider is setting the right price.

WHY PRICING YOUR HOUSE RIGHT MATTERS

The price you set sends a message to potential buyers. A smart buyer who knows their own budget will be looking at a lot of similar properties, and having a drastically different price than other similar properties can lead to trouble finding a buyer.

Putting your house up for a lower-than-average price sounds like it would help you sell faster, but if you price your property too low, you could be sending the message that there is something wrong with the house, or that there is some factor that makes it less desirable than other similar homes. If a buyer is expecting a certain price point and your property comes in way below that, it could give the impression that it’s worth less than it should be.

On the other hand, if you over-value your property and price it too high, you will deter buyers who would otherwise be interested, and your property may sit on the market, while more affordably-priced similar properties get purchased first.

Another danger to over-pricing initially is that a significant price drop can be a red flag for buyers, because it shows them that buyers have been uninterested in the property for a significant period of time.

The key to pricing your house right is finding the balance between attracting buyers and meeting market expectations. This is not an easy calculus, which is why it’s vital to connect with your local real estate professional, who knows the market trends, the buyer trends, and the pricing trends, and who is ready to help you sell your house quickly and at the right price.