The price you set for your home sends a message to potential buyers.
If you price it too low–in an effort to force a bidding war– you might raise questions about the home’s condition or leave the assumption there’s something wrong with the property.
It could also cause buyer’s looking at a slightly higher price point to miss your home altogether–even though it might be “the one” they’re looking for. Simply because it fell under their search parameters.
Overall, grossly underpricing might have the negative effect of “leaving money on the table” and hurting the buying power on your next home.
On the other hand, pricing your home too high–you run the risk of deterring buyers.
When that happens, you may have to do a price drop to try to re-engage interest in your home when it sits on the market for longer than the market average.
And be aware: Price drops can be seen as a red flag for some buyers who will wonder why the price was reduced and what that means about the home and its condition.
Your goal is to price your home at Market Value. A properly priced home will net you the best response and overall result.
In this market, comparables are as much an art as they are a science. Make sure your agent has a strategy to price you high–without overpricing you.
You will have a better chance of selling quickly and getting multiple offers that could get you the best terms–not to mention the highest price the market will bear.
Want more? Reach out or check out our Home Buyer or Seller guides HERE.