How Important is Pricing your Home?

Pricing your Home Right is the #1 Marketing Tool

In theory, selling a home should be easy right now. Real estate has been rebounding for more than half a decade, and home prices are climbing at a healthy 6% annual clip. The improving economy is creating a slew of would-be buyers, and there’s a dearth of homes for sale. On paper, this has all the makings of a classic seller’s market.

Every seller wants to sell their home for the best possible price – and hopefully as quickly as possible. But accomplishing these goals requires taking a certain approach to the home sales process that many owners are unaware of. Without experience selling homes and an understanding of how the market works, it can be hard to get the results you want. Ask me for a Professional Comparative Market Analysis, find out what your home is truly worth. Here are a few top Myths about how your home sale is affected by Price

Quick Offers Means The Home is Priced Too Low

"A quick offer is an indication that you priced the house too low". This statement is one of the more common pricing myths among sellers. A quick show of hands by all the real estate agents reading would tell you they have heard many times from sellers that “they gave their home away” because it sold quickly. This is 100 percent false.

The moment your home is listed on the market, it will be seen by multiple buyers. If you have priced your home right, many of these buyers will be interested in it immediately. These buyers may have been shopping for weeks or months, looking for a home like yours at a competitive price point.

With the right price in the right market, you could get multiple offers in a very short amount of time. This is especially true while there are a limited number of homes available to purchase. 

We Need to Price Our Home With More Negotiating Room

Trying to price to create a lot of negotiating room will result in you never getting the chance to settle in the first place. When a home is priced too high, it will be avoided by buyers and their agents. They will all be waiting for the price to go down to something reasonable. If you wait very long, you will run into the problem of buyers thinking something is wrong with your house.

Talk to BreckLiving about how to price your home and about what will happen with negotiations. We can help you understand what price will be competitive for your home, and will help you decide on the minimum offer you want to accept. 

Zillow Says It’s Worth More

"The value you have come up with for my home can’t possibly be right because Zillow thinks it’s worth X.” Your mom thinks you are the best looking man or woman in town too. The fact of the matter is Zillow’s values are all over the board. I have personally seen homes as much as $150,000 both over and under the actual value. So when someone asks me whether a Zillow home value is accurate, the look on my face is usually says it all.

If you have been drinking the Zillow Kool-Aid, you need to stop. Only a professional Comparative Market Analysis can give you an indication of your best home pricing. While Zillow has an excellent site for looking at homes, as well as other data points, their Zestimate is their weak spot. In fact, it is surprising they have kept this feature with all the backlash they have received from both real estate appraisers and agents alike. 

Final Thoughts

Pricing a home properly is a skill and an art. The price is also the most important consideration for getting your home sold. If you get the price, wrong nothing else you or your agent does will matter. In fact setting the right price is 75% of the marketing for your home. The correct price attracts the right buyers.