The Benefits of Proper Pricing
I became a certified Pricing Strategy Advisor because determining the proper listing price for a home is one of the most important services an agent can provide. Clients deserve someone who can deliver an accurate, comprehensive, fact-based assessment of a property's value. Pricing your home within the current market price range helps ensure a faster sale at a higher sales price.
Accurately pricing a home at the start is so important because a property will receive the most attention from buyers when it first hits the market. You may think - I'll start out at a higher price and test the market. However, this usually results in losing buyers who would have been interested when your property first listed - not 6 weeks later, after a price decrease. Not only that, the longer a home sits on the market, the more buyers start to wonder - "what is wrong with it?".
There are several benefits of properly pricing your home.
1) Faster Sale:
A quicker sale creates less inconvenience to you. If you have moved before, you know the energy it takes to prepare for a showing: keeping the home clean, arranging for pets, children, and altering your lifestyle.
2) Higher Offers:
If a home is priced right, the excitement of the market produces higher sale prices. Buyers fear they might lose out on a good home when it is priced right.
Sellers are less likely to receive 'low ball' offers.
Better pricing can attract multiple offers.
3) Increased Sales Agents Response:
When sales agents are excited about a home and it's price, they make special efforts to contact all of their potential buyers. Knowing that it is priced properly for its market, they expect it to sell soon and encourage their prospects to act quickly. Their excitement is contagious!
4) Better Response from Advertising and Sign Calls:
Serious prospects are well educated about asking prices in the areas they are seeking, and do not waste time on a home they consider overpriced.
5) More money to Sellers:
Sellers net more in terms of actual sale price and by less carrying costs. For every month that your home is not sold due to being priced too high, you have lost money due to another mortgage payment, taxes, utilities, possible association fees, insurance, and maintenance.
Sellers often accept a much lower sales price if the property languishes on the market.