I saw that someone reached my blog by doing an internet search on overpricing or inflating home listing prices, so I decided it might be a good time to talk about how to price a home. Every market is different, but in this tight real estate market, it is especially important to get the price right from the beginning.
Check out “How to Price a Home” on MyHomeHouston Team’s blog, it is a great read. He starts with, “A home will sell for two reasons: price and exposure.” Very true. The thing to remember is that the price is set by YOU, the seller. I can advise you on a good price, I can show you why those prices are good by looking at comparable properties, but I can not set the price for you, it is ultimately for you to decide. The Exposure, on the other hand, is my job. Thankfully for me and for my clients, Carpenter Realtors has an award winning Home Marketing System already in place to give your home total market exposure.
So, you’re thinking, “but I want the most I can get from the sale of my home.” Well, I want you to get that too, but it might not always be realistic. That is why we look at what the homes in your neighborhood are selling for and the ways they are just like your own home or different from your home. We can then make adjustments to find the right price for you. For example, if your home is exactly the same as the one next door, but the other one has a deck, patio, and pool, you can’t expect your home to sell for the same price as the neighbor. I know how to adjust the price to fit your home.
Maybe you’re thinking, “Well, let’s price it high and then see what offers we get” but the truth is that if you are not pricing your home right from the beginning, nobody will come look at it. You will not get offers to work with because they already think you are overpriced and unmotivated. They will be hesitant to start negotiations with someone who may be difficult to work with.
If your home is overpriced, you run the risk of making the other homes look better, which will actually help sell the competition. Agents know how homes should be priced, so when looking for listings for their clients, they are not willing to waste time showing them homes that are not worth the price. They want to do what is best for their clients, not get them into a home they know is not priced well.
If you do get an offer on your overpriced listing, you’re thinking, “GREAT! I knew my house was worth more than that agent told me!” Well, you could be in for more trouble later in the transaction. You accept the offer, then the bank does an appraisal and finds out it isn’t worth that much and then your buyer can’t get his mortgage and can no longer afford your home… then the deal falls apart. Because this can happen later in the transaction, it can cause bigger headaches. You may have already bought a new home to move into at this point or moved your stuff out of the house and now your home isn’t actually sold. Yikes!
It is important to take advantage of the initial surge of interest you will get when you first list your home by pricing it right to get buyers interested NOW. We do not want your home to be “stale” on the market. Pricing your home right gives you a clear competitive advantage, which you will really need in this tight Indy area real estate market.