An Absence Of Competing Listings In A Broad Price Range Does Not Mean You Can (Or Should) Round Your List Price Up To The Top Of That Range


An Absence Of Competing Listings In A Broad Price Range Does Not Mean You Can (Or Should) Round Your List Price Up To The Top Of That Range
By Scott Rogers • May 26, 2023
Most (all?) home sellers want to sell their homes for as high of a price as is possible. Makes sense. Why wouldn't you want the best possible price for your home? Pricing in a low inventory can lead to some interesting questions... If we look at recent sales that are comparable to your home, and we see a sale for $395K, $400K and $405K... we might conclude that your home is worth right around $400K in the current market. Different sellers then might choose different pricing strategies: $395,000 (just under market value) $399,500 (market value, less a smidge to achieve a nicer number) $405,000 (let's be reasonably optimistic) $409,000 (let's be really optimistic) $415,000 (let's be super duper optimistic) Etc., etc. But what if, as you are choosing a price for your home, and you see these list prices of homes in your school district... $300,000 (much smaller house) $305,000 (much smaller house) $307,500 (much smaller house) $455,000 (larger house) $550,000 (much larger house) It might be a bit tempting, for some sellers, to then round up from that intended $400K target sales price all the way up to $449K or $450K. After all, if someone wants to buy in that school district, and they're going to pay $400K or more, they don't have any options until they get up to $455K. So, why not just price a bit under that competing house? Well, maybe you can already tell from the information laid out above, but buyers will likely look at your $449,500 price and think... [1] This house seems a lot more similar to those other homes that recently sold for $400,000. [2] This house is a good bit smaller than the competing $455,000 listing. [3] I don't think $449,500 is a reasonable price for this house. [4] It's hard to imagine negotiating a $449,500 house down to $400K or even $410K, so I won't make an offer. So, again, you are likely to be much better off pricing your home based on recently sold comparable homes -- rather than rounding up to be priced just under the next highest competing list price. Receive Updates by Email Recent Articles: Is There A Price You WOULD Pay For This House? 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
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 24, 2024 (unless otherwise noted).
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