Pricing Property Competitively
One of the most critical components in listing a property for sale is pricing it properly. It is particularly important when the market begins to shift from a Seller’s market to a Buyer’s market. As inventory increases and prices soften, it is imperative that Sellers price their property competitively. A correct list price is like a magnet, attracting ready, willing, and able Buyers to the property.
The determination of market value is normally based on a set of assumptions, such as the location of the property, the size, and condition of the property, and the nature and condition of the market. Existing inventory, past sales, days on market, current interest rates, and the economy, are all key factors to consider when pricing a property. Ultimately, the market decides the price and the market’s opinion is truly the only opinion that counts.
There is no “exact price” for real estate, but analyzing current market conditions and sales data can give Sellers a fair indication of value. In a shifting market, pricing at or below past comparable sales prices is wise. Get in front of the curve in order to generate interest! A well-priced property will sell faster and at the property’s highest and best price.
Often, Sellers make the mistake of pricing their property too high. Unfortunately, this often attracts the wrong buyers who will compare their property with other properties in the same price range. Those Buyers will “bounce off” of the overpriced home because it makes other homes appear more attractive. The right buyers won’t even see the property because it is priced too high.
Price Your Home Right
Conversely, there are many benefits to pricing a home correctly. The right price will attract agents and Buyers and will garner more exposure and a better overall market response. There are also emotional benefits to pricing a home properly. Selling a home can be an arduous and complex process. It can be taxing emotionally and it can be disruptive, so these less tangible factors should also be factored into the list price.
For more information on the process of pricing a property properly, please feel free to contact me. I can provide you with a free comprehensive market analysis and share more about the benefits of proper pricing.