Every home seller wants to make money when selling a home, but on the flip side of that, no buyer wants to pay more than a home is worth. Fortunately, at the fulcrum of this value seesaw is the key to a successful home sale—the perfect price. Here’s what you need to know about pricing your home to sell.
Why Is Pricing Your Home Right So Crucial?
Every agent knows that the key to a successful home sale is starting that sale at the right price. But only a good—nay, a great—agent knows how to manage the balancing act that is the home valuation. That agent will know how to find that middle ground between seller expectation and buyer demand.
But why is that perfect, balanced number so important anyway?
Price attracts the right buyers
To sell a home, you have to get the attention of buyers looking for homes like yours—similar size, condition, amenities, and yes, price. These buyers will most likely use a customizable online search to find homes. Should your home not meet one of the buyer’s criteria, your home will fail to show up in their search results.
So, how do you get your home into that buyer’s search? You meet their criteria. Since you probably can’t change the size, style, or overall condition of your home (without significant expense), the thing you have to change is the price! The easiest way to do this is to match the price of other similar homes in the area using a Comparative Market Analysis (CMA).
You’ll ultimately sell faster and for more money
Many sellers make the mistake of thinking they can price high, then drop the price later if their home doesn’t sell. This isn’t an effective strategy for a couple of reasons. First of all, it takes time. Your home will likely sit on the market without any interest for at least a month. Secondly, when you finally do decide to drop the price, it will have lost that “new home” spark that gets buyers excited, and still probably won’t get a lot of interest.
Lastly, overpricing your home, especially in a hot seller’s market, can actually cost you money in the long run. A competitively priced home in a seller’s market could actually receive more than one offer, ultimately leading to a bidding war and escalating prices. An incorrectly priced home likely won’t have that same interest.
Buyers will be more confident in your home
The price of a home—specifically that price compared to other similar homes—says a lot about a home. If a home seems nice, but the price is low, buyers may wonder what’s wrong with it. A home priced too high will likely sit on the market for quite some time, at which point buyers will start to question what problems might have caused it to linger.
Buyers may even use price to indicate your reliability as a seller. Is the price low because you’re trying to quickly pawn off a problem house? Is the price high because you’re difficult to work with or unwilling to negotiate? A buyer might not want to get involved in a huge financial transaction with someone they feel isn’t trustworthy.
The Bottom Line: Price Your Home Right!
The best way to make money on your home and sell it in a reasonable amount of time is to price it right—from the moment you list. And the best way to find that right price is with the right agent! If you’re thinking of selling a home in the Triangle, contact Ann Milton Realty today to find out more about how we can find the right price for your home.