When deciding how to price a home, what is the most beneficial strategy that will result in a fast and lucrative transaction?
According to misconceptions provided by home builder lotteries, and a surging trend in multiple offer sales, selling a property should be a relatively fast and efficient process. Yet, there are still those individual homeowners, real estate agents and investors that are finding their homes sitting on the market for far too long. Many are failing to achieve the optimal combination of selling a home fast and receiving the price they desire.
Proper pricing strategies are imperative to the timely and lucrative sale of a house. It’s what clearly divides those homes that sell in hours under multiple bids from those that have been rotting on the market for an extended period of time. But what is the best strategy to use when pricing a home?
The most common blunder is obviously overpricing. The common misconception is that the market is good and the sky is the limit. Sellers often believe higher prices are worth a shot, as buyers can still attempt to negotiate better terms. In reality, overpricing results in listings being overlooked by the right buyers. Unnecessarily high prices may make a home look inferior to others in its price range and frequently relegate it to the listings graveyard.
By comparison, generating a price that is equal to local comps may result in a less desirable outcome. While it could certainly deliver a reasonable amount of attention in this market, buyers will still try and negotiate a lower price, leaving you with less than you had hoped for.
Those still left wondering how to price a home should take notes on the recent housing lottery trend. Generating a relatively low asking price may be your best option. Creating a frenzy by underpricing, giving the appearance of a bargain, forcing bidding wars and increasing motivation can lead to a higher end price and net proceeds. It may serve to indirectly increase your property value. This current strategy, on how to price a home, is creating a lot of action in the housing sector and is responsible for the sensational press you’ve been reading. Why not test it out yourself?
