The balancing act of a home seller. Don't price too high, or too low!


The balancing act of a home seller. Don't price too high, or too low!
By Scott Rogers • August 14, 2012
This eternal pricing challenge is true more than ever now, in a market that still favors buyers.... FIRST -- It is imperative to price your home competitively (not too high). Over-pricing will often lead to significantly fewer showings, and lower levels of interest from buyers. BUT -- In today's market, nearly every buyer will want to negotiate with you, not being satisfied with paying too close to asking price. So what is a seller to do!?! Let's suppose, for a moment, that your home is worth $250,000 based on recently sold properties. Competitive pricing would mean pricing your home between $240k and $255k. With elevated inventory levels, you must stand out on price, being seen as a good buying opportunity. But then, when a buyer comes along, they'll likely want to negotiate you down $10k - $15k, or even more. If you priced the home at $260k or $265k to leave yourself room to come down $10k to $15k to $250k you likely wouldn't have near the interest as compared to pricing the home at $249k. But if you price the home at $249k, you certainly won't be excited about coming down to $239k or lower. Suggestion #1 -- Use other "for sale" properties as a guideline. If comparable properties are available for $240k-$249k, you'll need to price your home lower in the $249k range, but if comparable properties are priced between $260k and $270k, you can likely get away with a higher asking price, perhaps around $255k or $259k. Suggestion #2 -- Price your home "just above" the value suggested by recently sold homes. If that value is $250k, consider a price of $252,500 or $254,500, or something in that general range. Pricing is always an essential component of marketing a home to sell --- and in a fluctuating market, it becomes even more difficult than usual! Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 21, 2024 (unless otherwise noted).
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