Pricing Guidelines

While often quoted by sellers, these items do not affect the value of your home:

  • What you paid

  • What you want

  • The cash you need

  • A refinance appraisal

  • What Zillow says

  • What another agent says*

*Please note: There will always be plenty of agents willing to overprice your property to get your listing.   After all, the best advertising a REALTOR can hope for is their sign in your front yard!

The buyer always, always, ALWAYS determines market value.

Your home is only worth what a ready, willing, and able buyer will pay for it.  Today’s buyers are more educated than ever.  Most buyers will have recently looked at 10 or more properties before viewing yours. They may have viewed dozens (if not hundreds) of properties online as well.  The buyers decide if it is priced fairly, or if it is overpriced.

The # 1 reason homes fail to sell is pricing it too high!

Buyers always have the same list of questions.  Here are the first two:

  1. What are properties like this one selling for right now?
  2. How long has this home been on the market?
Online-HomeBuying
Overpriced

It is in your best interest to price correctly.

When your home is priced perfectly AND new to the market many interested buyers will feel like sharks in a feeding frenzy….  They found the house before everyone else did and they HAVE to HAVE IT!

Today’s buyer isn’t worried about getting to your bottom dollar because they know they don’t have time. They are more worried about getting the home under contract and off the market before the whole world finds out it is for sale!  Therefore, buyers are more likely to pay top dollar when your home is still new to the market.

However, after a home has been on the market for a few weeks or months a buyer may love the home just as much, but will have the exact opposite reaction if they are told it has been for sale for a long time. They may think if it’s been around this long than it will still be around next week OR they may experience self-doubt and think, “What did the other buyers see that I missed? Let’s throw the seller a “low-ball” offer in case there’s something wrong that I overlooked.”

You only have two choices. You can price your home to SELL or you can price your home to SIT on the market.

Often sellers overprice their home and end up needing to do at least one price reduction before selling.  Don’t wait too long to reposition your asking price if the market is saying “No thank you” to your price!

Priced-to-sell

Here are some final thoughts to keep in mind:

  • Sellers may have special memories tied to the home (birthdays, holidays, etc.) The home is practically a member of the family. The buyer, however, has no special memories tied to your home.
  • The buyer may have different decorating tastes than you do.
  • In the buyer’s mind, your property is a box with a certain amount of square footage.  That box has many of the same features a lot of other properties do.

Here are some final thoughts to keep in mind:

Sellers may have special memories tied to the home (birthdays, holidays, etc.) The home is practically a member of the family. The buyer, however, has no special memories tied to your home.

The buyer may have different decorating tastes than you do.

In the buyer’s mind, your property is a box with a certain amount of square footage.  That box has many of the same features a lot of other properties do.

Bottom line: Is your home the best value at the current asking price?