Should You Price Your Home High in This Market?

Many buyers think they can get away with overpricing in this
market. It’s not a wise move, for a few reasons.





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Is leaving room for negotiation in a home’s list price a
worthwhile tactic for home sellers to utilize? We’re in late
spring now, and the activity in our real estate market is
sky-high. Jobs and wages are on the rise, buyers have a sense
of urgency to lock in rates now before they go up, and there
simply aren’t enough homes listed for sale to keep up with
demand. As a result, bidding wars have become commonplace
and home sale prices keep climbing. A common sentiment sellers
have is, “Why don’t I just price my home high and leave room
for negotiation later if this is such a good market?” The big
reason this strategy doesn’t work is because of all the
knowledgeable buyers in our market. When you overprice your
home, they will know it and move on to the next one. It comes
down to pricing the property to sell. Buyers are looking at
multiple properties, and they will make an offer on the best
value.


It’s best to price your home at market value.

Let’s say you’re driving down a road and need to get gas.
There are two stations conveniently located right next to each
other. The difference is that one station has gas on sale for
$2.50, while the other has gas for $3.00. You will obviously go
to the station that has gas for $2.50 without thinking about
it, and that’s kind of what happens when you overprice your
home. The home that is a better value will get the most
attention. It has also been statistically proven that a
home gets its most attention from buyers in its first 21 days
on the market. The interest nosedives as sellers make price
reductions. The buying community will start to think there
is something wrong with the property if it doesn’t sell
within that time frame. We believe it’s always best to price
your home at market value so we can guarantee it will get a ton
of activity right out of the gate so multiple buyers can come
in and drive the price up. If you have any questions for us or
any suggestions for future topics to cover, give me a call or
send me an email. I would love to hear from you soon.