Location and condition aren’t the only things that can keep you from selling your home. In a healthy real estate market, houses that don’t sell after a while are at a significant disadvantage. One issue that can keep an otherwise desirable house from selling is a price that’s too high.
Many homeowners are eager to set a relatively high price when they go to market.
There are several reasons:
Unfortunately, there are good reasons why a higher asking price spooks buyers. It can take qualified buyers out of the running even if they can afford the home.
If you are selling your home, learning about pricing can help.
In big-ticket items such as houses and cars, pricing is anything but an exact science.
Unfortunately, the more valuable an item is, the easier it is to misjudge its fair market value. This is especially true of things, such as houses, that cause great sentimental attachment.
In many cases, people who are otherwise ready to buy your home will decline to make an offer not because they feel the price is unreasonable but because better bargains are available.
What’s more, there are psychological factors involved:
When selling your home, the price is an important signal to prospective buyers. If the price is not in tune with both your needs and market conditions, it will create confusion.
Remember, this doesn’t mean a house has to be underpriced just to sell! Instead, sellers should look to the expertise of a trusted real estate professional for a proven pricing methodology.
To develop an accurate picture of the fair market value of a home, ask your real estate agent to prepare a comparative market analysis (CMA) for you. They will look at recent sales in the neighborhood as well as sales of comparable homes — those with similar amenities.
Only after doing this research is it possible to select a price that:
The price a real estate professional comes up with may be lower than what you first expect. However, a good home can still be priced somewhat higher than average for the local market. In the long run, this leads to an easier and more rewarding selling experience.
Many sellers choose
No matter what your goals are, your first step in selling your home should be to contact a reputable local real estate agent. That way, you can get on track for the results you want.