Friday, October 16, 2015

Pricing your Home

Correct Pricing is Critical
Pricing your home correctly from the very start is the single most important thing you can do to ensure a successful sale - one that is quick and puts the most money in your pocket.

Homeowners are often tempted to set the initial list price higher than fair market value because they think they can simply lower the price later if the property doesn't sell. Most people don't realize, however, that setting the price too high in the beginning can drastically increase the time it takes to sell and typically achieves a final sale price that is well below market value.

  • The higher the list price, the more buyers will automatically exclude your property from consideration. By pricing your property at fair market value, you increase the number of potential buyers.
  • A listing generates intense interest during its first two weeks on the market, but activity drops off by more than 80% in the third week and beyond - subsequent price reductions notwithstanding. A property that is priced too high will not get the necessary attention during this critical period of peak activity.
  • Buyers are wary of price-reduced property, thinking something might be wrong with it or that it may still be priced too high.

Statistics clearly indicate that the longer a property is on the market, the lower the final sale price will be. Properties that sell in the first four weeks typically achieve a sale price within 1.9% of their fair market value. This discount increases to 3.6% after four weeks on the market, 5.6% after 12 weeks, and 8.9% after 24 weeks! By pricing your home correctly from the start, you greatly increase your chances of selling your home faster and for more money.

As experts in your neighborhood, my team and I have the knowledge and experience to choose the best list price for your property. Our goal is to maximize your proceeds while minimizing the time it takes to sell your property.