Hi there! Here’s another tip for you when you’re thinking of selling your house…
One of the most well-known real estate mantras your real estate professional should tell you is this: “If you overprice your home, it will take longer to sell and it will sell for less money.” Yet, many sellers continue to believe their homes can defy market physics. I understand. You have a lot of great memories and have put a lot into your home and you want it paid back.
But the real truth is, if you really want to sell, overpricing seldom works because buyers search for homes online according to their loan qualifications. If their ceiling is $500,000, they’re not going to search for more expensive homes (in this case over $500,000), and if your home is priced at $505,000, it won’t be found by the buyers who are most qualified to buy it. And remember, when buyers can afford more, they’ll compare your home to other homes in the same price range and your home may fall short in features, location or condition.
Also, remember search price increments vary depending on scale. Buyers use $10,000 increments for $100,000 homes and $100,000 increments for million-dollar homes. Pricing just over a logical range end point like $255,000 or $505,000 will exclude that home from some search results. If you price just under a range end point, like $498,000, your home will be seen by the buyers who are most likely and able to buy your home.
And, while some buyers’ search in higher price ranges than their rounded end point, their intention is to offer less, so that makes setting a higher price for your home counterproductive. And buyers like to feel they’re getting a ‘deal’, so pricing it a little lower, could help generate the attention of multiple buyers and get the price bid up.
Your best chance of selling your home quickly for the highest price possible is to attract buyers who see your home as well priced. You’ll attract more serious buyers who make higher offers with fewer negotiations. And that my friends is what all sellers really want!
I hope this is helpful – remember for tips and other up to date real estate information – “like” me on Facebook at Laura’s Choice Realty! And don’t forget to enter your email and subscribe to Laura’s Choice!
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