It Pays to Price It Right!
In a down market, the fastest way to make your house stand out is to price your home competitively.
You can increase the desirability by delivering the whole package: competitive pricing, emphasizing your home's features and making sure the house is in meticulous condition. These are the three key knobs you can control when marketing your home.
The real estate mantra may be "Location! Location! Location!" but that's also the one factor that you have little to no control over. Setting the right price from the start is one of the most important factors toward successfully selling your home.
Price! Price! Price!
It's natural for homeowners to think their home is the best on the block and head and shoulders above the competition. Unfortunately, living in a house creates blindspots for home sellers which can really work against them when it's time to price their home competitively. You need a fresh set of eyes and concrete data to base your decision on. You don't get a second chance to set your opening price and ironically pricing too high can ultimately result in selling for too little.
If you've priced your home above the competition, often buyers may assume that you are unrealistic and that you won't even consider their offer because you're "too far apart" - they may not even bother to take a look at your property because they've already decided that you'd be unreasonable to work with. Even worse, realtors often use overpriced homes to close on another home. They'll show your home so their buyers can see what a great value another home is so they can close the deal.
An overpriced home generates little interest, especially in a down market. You are essentially decreasing your number of potential buyers and prolonging the time that house will sit on the market. And the
longer a home sits on the market, the less desirable it becomes.
Questions begin to be raised by buyers ...
"What's wrong with the house?"
"Do you think the sellers are getting desperate?"
A house that has been sitting untouched on the market does not create any sense of urgency with buyers. They take their time....circling. As desperation grows with the sellers, they institute a price drop and an offer finally comes in -- often it's not what they had hoped for. The sellers are no longer in a position of strength and are concerned that this might be the best offer they get. Their weakened negotiating power leaves them accepting a selling price even lower than what the market warranted.
Set the right price upfront and position yourself to receive and counter incoming offers confidently.