Since, for most of us, the value of our home, represents our single – biggest, financial asset, and, therefore, doesn’t it make sense, if/ when, one decides to sell his house, to make an informed decision, in terms of the all – important factor, of properly pricing it, to sell, at the most desirable, price, terms, and all other, related, relevant factors? Many homeowners, become overly, emotional, and don’t fully, consider, the true value, of their property, which is one of the most important reasons, to hire, a quality, real estate professional, etc. In my, over, 15 years, as a Real Estate Licensed Salesperson, in the State of New York, I have come to have strong feelings, on the need, to price a house, correctly/ right, from the start. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 4 home pricing alternatives, and when, it might, make sense, to use, each one.
1. Price at the high – end: Although, some, mistakenly, seem to believe, a higher listing price, is the best approach, to getting a higher, selling price, in many instances, this is not the fact! The final decision, in terms of the price offered, is the homeowners, but, it is incumbent – upon, a quality, real estate agent, to inform his clients, of the advantages and disadvantages, of doing so! During, a so – called, Sellers Market, pricing, aggressively, may make sense, especially, if the specific, target property, has certain, unique, and/ or, better quality features, etc (unique, location, condition, etc), but, even, then, it is wise, to fully, consider, the competition, and price, accordingly. Remember, statistically, historically, one receives the best, highest offers, in the first few weeks, after it is listed!
2. Price in the middle: When, one begins the process, properly, and is focused, on a professionally, designed, Competitive Market Analysis (CMA), the best approach, is generally, to price the house, in the middle – range, of the competition, according to competitive, similar houses, and features, conditions, etc.
3. Price at lower – end of the range: A suggested, pricing range, should be directed, by the competitive report! When, one wishes to attract more potential buyers, and hopes to sell, quickly, this strategy, of pricing in the lower – end of the range, may be sensible!
4. Price low, to seek a bidding war: Sometimes, when, a house is priced, extremely, low, and an experienced, knowledgable, agent, is handling the deal, it creates significant activity, and, hopefully, a bidding war, which might tend, to bring the selling price, up, quickly!
Before one hires his agent, he should have a thorough discussion, on which approach, might make the most sense, for his particular house! Hire the right professional, work, as a team, and commit to a specific strategy, for the best, possible results!