Benefits of realistic pricing
Why not just price your home as high as you think you possibly can?
The chart below, from the National Association of Realtors, shows your likelihood of selling at different market values:
|Price % Above |
|Percent of |
|Priced at market||60%||-10%||75%|
Realistic pricing means you will:
- Capitalize on the first few weeks of high activity and interest.
- Attract more prospects.
- Increase the likelihood of receiving higher offers.
- Minimize the inconvenience of keeping your home ready to show.
- Accomplish a faster sale.
Remember, your need for money does not increase the value of your home. If IBM stock trades between 104 & 108, it does no good to insist on selling at 112. Pricing too high only means your price will make other homes in your area look like better deals.
Overpricing your home could also make it difficult for a buyer to finance. 99% of all homes are financed. If you overprice your home, a buyer may be denied financing because the appraisal will come in too low to justify the loan.
Catching the crest of the buyer-interest wave
Timing is critical!
The majority of buyer activity occurs in the first two weeks after a home goes on the market, and peak sales activity occurs within the first 10 days. Buyers who see a property at a non-competitive price will not be back for a second look. The longer your home stays on the market without an offer, the more it risks taking on a "shelf-worn" appearance, reducing your chances for closing a sale with a full-price buyer.