Setting The Right Price

Ask the Right Price

Asking the RIGHT PRICE Affects Your Bottom Line!

When you’re selling your home, the price you set is critical to your success. That’s why it's so important to get a professional evaluation from an experienced Realtor®. This person can provide you with an honest assessment of your home based on several things, including:

  • Current Market conditions (this takes into account things like current financing availability and rates, how much and what type of competition in your area, "absorption" rate, etc.)
  • Condition of your home (this includes repairs or improvements on your home - those it's had, and those it needs)
  • Location of your home (what community it's in, what it backs to or what it faces, etc.)
  • Your specific situation and time frame (seller's "motivation" is always a critical factor to consider in designing your pricing strategy)

In real estate terms, "market value" is the price at which a particular house, in its current condition, will likely sell for within 30 to 90 days.

Sellers often say things like "I don't want to price it too low...what if I could have gotten more?" or "if I price it a bit higher, I can always come down!".  While that's certainly true, pricing a home too high will have certain consequences like:

  • Limiting buyer activity - They buyers "most likely" to be right for your home may not even look at it because it would be out of their price range.
  • Reduced showing activity - The Agents, who are generally more in tune to what represents value at any given time, will be less likely to show your home to their buyers because they know it's priced unrealistically
  • Being used as leverage - While your home may be getting showings, it may actually be helping to sell your competition!  When your home is priced too high, buyers who see it decide someone elses home is a better value
  • Having a long market time -  Ask yourself this question:  "If I'm looking to buy a home, but it's been on the market for a long time, what will I be wondering?"  The typical answers are “what’s wrong” or “why hasn’t this sold?” or "what is everyone else seeing that I'm missing?" 
  • Ultimately getting an even lower price than you would have, had it been priced appropriately to begin with
  • Wasted time and energy. The majority of buyers need a loan to purchase a home, and their lender will require an appraisal of the property.  Pricing it too high often results in a low appraisal, and a lost buyer!

Realtors® have known it for years – Well-kept homes, PROPERLY PRICED right from the start will get you the fastest sale for the best price!  And that’s why you need a professional to assist you in determining the current market pricing for your home.  For more information on this topic, visit our Request a CMA page.  We invite you to complete the CMA Request form to begin the process of determining how your moving plans fit in with the current real estate market.