Tip of the Week: Pricing A Home To Sell

Psychologically which price looks and feels better to you - $299 or $300? People generally feel like it’s more of a bargain with $299, although the difference is a mere dollar.

There’s a fair amount of psychology and strategy that goes into determining a home’s asking price and while you may have a price in mind, that doesn’t mean your home is priced to sell. It’s all about tapping into the mind of potential buyers and how they identify with your price.

The biggest hurdle is to determine a fair price for your home, sans any emotions. Ask any homeowner what their home is worth and the price will include all the memories that have gone into making a piece of property a home. Emotions have no place in this business practice.

It’s understood that sellers don’t want to simply give their homes away and everyone wants to sell for the maximum price, but buyers are seeking bargains and with an abundant inventory, sellers must be flexible.

The real estate agent will identify the approximate value of a property based on comparisons of similar properties sold in a neighborhood, the market conditions, competing surrounding properties, and the time of year. Once all of these elements are considered, the real estate agent will have a price range in mind.

Here are a few strategies for the seller to consider;

• Listen carefully to your agent’s pricing strategy – they are the experts. It’s their job to know what works and what doesn’t. And as with any strategy, be prepared to have an ongoing discussion about pricing with your real estate agent. If potential buyers are not biting, it may be time to re-think the asking price.

• By pricing your property on the average to the lower end of the price range, you will stimulate more interest among more than one buyer. Also, for those homeowners in a position to sell quickly, this would be a good option to get more offers. Sellers who list their homes too high miss out on a segment of buyers.

• Forget the creative pricing strategy - $488,888? Odd priced homes call attention to the price for no good reason. The goal is to showcase the property, and to appeal to as wide an audience as possible. Getting eccentric with your asking price counteracts the tried-and-true strategy of psychological pricing. Well thought out rounded figures work best - $299,000

A lot of factors can come into play when selling or buying a home, and not all of them can be anticipated. If you can be flexible and react quickly to changing market conditions you’re more likely to get the best price with the least aggravation.

Thanks for Reading,
The Inman Team