Pricing a home is essential to not only getting the property sold, but to get it sold quickly and for top dollar. Your home will most likely sell for top dollar when it is fresh on the market – usually within the fist couple weeks. At the beginning of the marketing cycle, you are exposing your home to ALL the buyers on the market. Within 30-days you reduce that number and could only be exposing your home to new buyers just coming in to the market.
When pricing your home, it is important to keep in mind that buyers to tend to “shop around”. They want to view homes and search for the one that not only meets there want and needs, but also for the best deal out there. If your home is priced too high for the current market, it will make the other homes look more appealing – you will be selling your competition.
Price is the most critical item that not only buyers look at, but also real estate agents, when looking at selecting homes to view. Poor location, poor condition, terms, floor plan, etc. can all be cured with pricing.
When it is time to negotiate an offer; if it is priced too high, it is possible that no onw will seriously consider or see the benefit of starting the negotiations. The more accurately priced the property is, the less likely the buyers is to start the negotiations with a “low ball” offer or even feel the need to negotiate.
If you do get an accepted contract, at the sale, your property will need to be appraised (if buyer is financing the purchase). If it appraisers below the contract price, there will be a problem. Such as:
- Lower the purchase price to appraised value
- Cancellation of escrow
- Buyer trying to find the funds to come up with the difference between appraised value and original purchase price