Selling is a team effort. Your Realtor is responsible for developing and implementing your home’s marketing plan. As the seller, you control the home’s condition and you set the price. However, it is the buyer who will actually determine the value of the home based on what he or she is willing to pay for it.
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Sellers set the price.
Buyers determine the value.
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As you set the price for your home, you’ll want to consider these factors, as well as the home-sale goals, other homes on the market and the current market conditions.
An Initial Surge of Interest
When a home first goes on the market, it generates an initial burst of activity. That's why it's so important to price your home realistically from the start. Don’t assume you can “test the water” with an unrealistically high price and then reduce it later.
The Risks of Overpricing
While we want to establish the highest market value for your home, it’s crucial not to overprice it. Overpricing:
- Makes competing homes look like better values
- Reduces agent and buyer interest
- Discourages prospects who wonder why the home has been on the market so long
- Can lead to mortgage rejections once the appraisal is in
Some sellers want to price high so they’ll have a “cushion” to negotiate with.
The problem is, they don’t have any buyers to negotiate with!
Get Professional Help Free
If you can spare a few minutes, request a free, no-obligation home market value analysis by providing some information about your home on our Market Analysis Form.
We will get to work immediately on establishing a reasonable price range for your home, given your specific set of circumstances. If you don't have time to fill out the form, but you'd like to get the ball rolling, please contact us.
