You know your home is one of a kind. Soon buyers will know too; you’ve just made the decision to list. The question now is: How do you price that unique property?
Here’s where your real estate agent shines. Pricing is an exact science, but strategic pricing is an art. That’s why you should entrust this function to someone who will accurately price your home, whether it’s a buyer’s or a seller’s market.
A good agent knows that pricing strategies depend on many factors; what works for one home may not work for another.
In a seller’s market, your agent might recommend pricing to encourage multiple offers. However, this will depend on the neighborhood and on the home’s value. The best candidate for this strategy is a well-maintained home in a desirable area where inventory is low. In this situation, the listing price will likely be at the lower end of a price range that reflects the home’s fair market value to encourage competing offers.
In a buyer’s market, the factors influencing price are the same – the neighborhood and the value of the home – but the strategy is very different. Here it’s all about demand and competition. Your home is in direct competition with others for sale in your neighborhood, and it should be priced to compare favorably. It also should be in top condition, and your agent may recommend fix-ups and staging to highlight its attributes.
Your agent will also look for trends. If properties in your area consistently sell below asking price, prepare for offers below the listing price and expect to have to adjust, particularly if you’re in a hurry to sell.
Whatever the market, a well-thought-out pricing strategy can make the difference between selling quickly at a fair price and sitting on the market with an overpriced property.
It’s worth getting it right the first time.