The Benefits of Pricing Right
1) Your home sells faster.
2) Your home never loses its "marketability".
3) There is less inconvenience to you.
4) Sales Associates will focus their energies on your property because it is more marketable.
5) You will attract more potential buyers. A well priced home gets a better response from sign calls and advertising.
6) The closer the price is to market value, the higher the offers.
7) A well - priced property generates the excitement that produces higher sale prices. You net MORE money in terms of sale price and lower carrying costs.
The Factors Influencing Overpricing
1) Extensive renovations and hidden costs
2) Urgent need for money
3) Desire to purchase in a higher priced area
4) Original cost of home too high
5) Lack of real market information
6) Building in "bargaining room"
7) Perceived emotional value
The Results of Overpricing
Many sellers believe that if they price their home high initially, they can always lower it later. Often when a home is priced too high, it experiences little activity. Gradually the price comes down to market value, but by that time it has been for sale too long and buyers are wary. On occasion, the price is dropped below market value because the seller runs out of time. The property sells for less than it is worth.
The Importance of Early Activity
As soon as a home comes on the market, there is a flurry of activity. This is a crucial time when Sales Associates and potential buyers sit up and take notice.
If it is overpriced, interested parties lose interest.
The price drops but many buyers are lost.
Missing the Right Buyer
You may think that interested buyers "can always make an offer", but if the home is overpriced, potential buyers looking in a lower price range will never see it. Those who can afford a home at your asking price will soon recognize that they can get better value elsewhere.
Remember the wrong price attracts the wrong buyers. It may even help sell your neighbour's home.
Let’s determine a listing price for your home by looking at the following items:
