One of the most critical factors in
selling a home quickly and for a good final sale price is choosing the right
list price. There are several different approaches you can take to determine
the right price for your property. Which one you choose depends on what
strategy you want to use to attract buyers, and also how much risk you're
prepared to take in order to attract offers.
Many homeowners simply want to list
their property at the highest price they believe the market can bear. They've
seen what a few properties are selling for in their neighbourhood and then add
an arbitrary percentage to reflect where they think the market will be by the
time they sell in a month or two. This rather optimistic approach is favoured
by sellers who want to ‘test the waters' to see just how high the market might
go. They think they can try the high end price first and adjust it downwards
later if they don't get results. As any Coldwell Banker ® professional can tell
you, this strategy can be a costly mistake. Overpricing your listing can have
several potentially damaging repercussions. Salespeople will be less likely to
recommend it to potential buyers, so you'll get fewer viewings. They may pass
it by in favour of other, more competitively priced listings, and in very
little time, they'll simply forget about it. Fewer viewers means fewer
opportunities for your sales professional to convert those prospects into
buyers.
Trying to solve the problem with
later reductions in the list price simply doesn't have the same impact as
pricing it right the first time. In fact, sometimes the opposite is true. Going
through price reductions means your house is on the market for a longer time.
And the longer it's on the market, the more suspicious buyers become that
something must be wrong. It's human nature. This means you may have to lower
your price even further to get action.
The ideal strategy to stimulate
buyer interest is to set your initial price either at, or even slightly below
market. In fact, in a very high demand area, it may even be preferable to list
the most sought-after properties at an under-market price. This is done to
encourage the seller's dream scenario – the multiple-offer bidding war.
How do you know what approach is
right for you and your property? I can
prepare a comprehensive market analysis to help you arrive at the right list
price. Not only will this report show you what comparable homes in the area
recently sold for, it will also show you current listings now on the market.
This is your direct competition – the properties you're competing against for
buyers, so choose your price accordingly. And remember to look closely at those
expired listings. This shows you what prices the market will not bear.
Contact me today for a free Home
Market Value Report and Staging Advice.
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