Pricing Considerations

If you want to get the best sale price for your home, don’t overprice it. Many homeowners believe that starting high will result in getting the price they really “want” or “deserve.” Alternately, they believe that a top-ranked listing agent and comprehensive marketing plan can attract the right buyer even if the home is priced above market value. Don’t believe either of these commonly held misconceptions! Overpricing your home when it first hits the market can adversely affect your sales price in the long run. Here’s why:

  • Today’s buyers are well-informed. Most home buyers – as many as 70-90% -- start their home search online. And, in contrast to years ago when they had to rely on an agent’s expertise, they now have an extensive database of properties currently on the market as well as easily comparable past sales data.
  • An overpriced property will stand out like a sore thumb and take longer to sell.  Those “days on the market” stat conveys that your home is not as desirable as others when in fact there is nothing wrong other than the price.

Even though a well-executed marketing strategy can attract more potential buyers, you ultimately won’t be able to close the deal if your home is perceived as more expensive than other properties in the same neighborhood offering similar floor plans and square footage. And, a home that languishes on the market can cost you time and opportunity in moving on to your next home.

Any prospective sale should start with a detailed comparative market analysis (CMA) based on solid data. This CMA provides a clear picture of a property’s approximate value and allows for upgrades such as a new kitchen, in-law suite, pool, or extra bathroom, as well as “as is” issues with an older roof or HVAC system. Pricing your home in line with the CMA assures you are competitive and may even attract multiple buyers who can bid the price up. Today’s tech-savvy buyers will typically avoid an overpriced home. By setting the right price based on a CMA and your realtor’s experience, you greatly improve your chances of achieving a successful sale on a timely basis.