Pricing a home for sale: the fine line between too high, too low, right!
For a variety of reasons, most people decide at some point that the time is right to sell their home. Since, for most, the value of this home is their single largest financial asset. or one of them, it would not make sense, at this point, you are more aware of some real estate realities, and proceed, with better knowledge, to a variety of relevant factors, especially pricing decisions. How one values their home, early on, often has significant ramifications! Wouldn’t it make sense to better understand as many relevant factors as possible in order to avoid the tendency to either overvalue, undervalue or just list your home, right? With that in mind, this article will attempt to review, consider, examine, and discuss what this means and why it matters.
1. Price too high: One of the age-old challenges is the conflict between what a homeowner believes their property is worth and what qualified potential buyers believe and/or are willing to pay. When a seller overvalues their house, they take a risk, obtaining the best possible results, since, in the vast majority of cases, the best offers are received, within the first weeks, after a house is listed, in the real estate market. Whether it’s greed, optimism, wishing/wishful thinking or not realizing a sales price quote are very different entities, this approach rarely works. In general, there is a lot of competition and what lenders appraise properties for and unless they line up, few houses sell!
two. Price too low: The risk of putting a house up for sale, too low, is putting off some potential buyers, because they feel/believe there must be something wrong, if it’s being offered, so it’s cheap! There is a fine line between offering something at the lower end of the market compared to significantly below that point!
3. Fair price – right!: The list price, for which a house is initially offered, should depend on the existing local real estate market. As this varies, region to region, state to state, and neighborhood to neighborhood, and even sometimes depending on the specific block, and the location on the block (corner, mid-block, adjoining properties, etc. .), one should retain a qualified real estate agent, to serve and represent them, and their best interests! The price range must be determined, having a professionally prepared Competitive Market Analysis, or CMA, to guide the process. An owner’s unique needs and personal situation are significant factors in determining where in that range the best listing price falls.
Obviously, the best way and approach to price your home for sale depends on a variety of factors, conditions, needs and priorities. However, when the initial listing price is just right, rather than too high or low, your results will generally be better!