Sellers typically focus on what list price will sell their home quickly and for top dollar. But when your home isn’t the only one in the neighborhood for sale, your asking price can actually result in selling your neighbor’s home instead.
How? If your home is priced too high, it can make your neighbor’s home seem like a bargain. Inaccurate pricing can result in extended market time which leads buyers to wonder what is wrong with your property, again shifting interest toward other properties in the area which are newer to the market.
This effect is even greater in a down market: higher inventories of homes for sale mean even greater competition for the buyer pool amid already increased average market times. Multiple homes for sale in one neighborhood further intensify the competition for buyer attention.
To increase the likelihood that your home will sell faster than average and for a better price, you need to be sure your initial asking price is appropriate for current market conditions and is competitive with neighboring listings.
Price is one of the first details potential buyers learn about a property, and it strongly influences which homes they preview and consider. Prospective buyers will be comparing your home to the other homes in that price range and in the neighborhood.
Therefore, you need to make similar comparisons when you set your price, identifying the pros and cons of your home with respect to others in the area. The risk of not doing this is overpricing your home with respect to the competition.
Pricing your home right in the first place requires knowing the market and knowing your home’s competition. A Realtor who knows your neighborhood and understands the current market trends can help you determine a range for your initial asking price.
Your Realtor should compare your home to similar homes that have sold recently in your neighborhood, making adjustments for the differences between them. The market analysis should then consider how your home measures up to homes currently listed for sale.
It can pay to be aggressive. Pricing your home competitively can increase the chances that yours is the home that will sell quickly and for top dollar.
copyright 2010 Shawn Buryska
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