Make Sure You Price Your Home Right If Thinking About Selling

Make Sure You Price Your Home Right If Thinking About Selling

Image title


In today’s market, where demanSellers often want to price their home higher than recommended, and many agents go along with the idea to keep their clients happy. However, the best agents realize that telling the homeowner the truth is more important than getting the seller to like them.

There is no “later.”

Sellers sometimes think, “If the home doesn’t sell for this price, I can always lower it later.” However, research proves that homes that experience a listing price reduction sit on the market longer, ultimately selling for less than similar homes.

John Knight recipient of the University Distinguished Faculty Award from the Eberhardt School of Business at the University of the Pacific actually did research on the cost (in both time and money) to a seller who priced high at the beginning and then lowered their price. In his article, Listing Price, Time on Market and Ultimate Selling Price published in Real Estate Economics revealed:

“Homes that underwent a price revision sold for less, and the greater the revision, the lower the selling price. Also, the longer the home remains on the market, the lower its ultimate selling price.”

Additionally, the “I’ll lower the price later” approach can paint a negative image in buyers’ minds. Each time a price reduction occurs, buyers can naturally think, “Something must be wrong with that house.” Then when a buyer does make an offer, they low-ball the price because they see the seller as “highly motivated.” Pricing it right from the start eliminates these challenges.

Don’t build “negotiation room” into the price.

Many sellers say that they want to price their home high in order to have “negotiation room.” But, what this actually does is lower the number of potential buyers that see the house. And we know that limiting demand like this will negatively impact the sales price of the house.

Not sure about this? Think of it this way: when a buyer is looking for a home online (as they are doing more and more often), they put in their desired price range. If your seller is looking to sell their house for $400,000 but lists it at $425,000 to build in “negotiation room,” any potential buyers that search in the $350k-$400k range won’t even know your listing is available, let alone come see it!

A better strategy would be to price it properly from the beginning and bring in multiple offers. This forces these buyers to compete against each other for the “right” to purchase your house.

Look at it this way: if you only receive one offer, you are set up in an adversarial position against the prospective buyer. If, however, you have multiple offers, you have two or more buyers fighting to please you. Which will result in a better selling situation?

The Price is Right

Great pricing comes down to truly understanding the real estate dynamics in your neighborhood. Look for an agent that will take the time to simply and effectively explain what is happening in the housing market and how it applies to your home. that will tell you what you need to know rather than what you want to hear. This will put you in the best possible position.


If you would like more information on our 30 day home sale guarantee then first let us see what your home is worth Click Here (Totally Free)

Image title


Randall Reinsch Headshot
Author:
Phone: 702-355-1996
Dated: September 18th 2016
Views: 67
About Randall: ...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Why Mortgage Interest Rates Are Spiking And What It Means To YOU - This past week we had something not
Vegas Is Americas Most Popular Thanksgiving Location - Las Vegas is America's No. 1 vacatio
A Math Competition In Vegas REALLY - Las Vegas is known for a quirky, kin
Save That I Voted Sticker - Here's a great reward for this horri

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

eXp Realty Las Vegas
6671 Las Vegas Boulevard South Suite D-210
Las Vegas, NV
702-830-7634