If you price your property too low, it may sell quickly, but you'll lose out on money. If you price it too high, it may not sell at all. Your agent can help you figure out the best asking price for your home.
The benefits of the right price
A well-priced property may generate competing offers, which will drive up the final price. Other real estate professionals will be enthusiastic about presenting your property to their buyers. Your home will sell faster because it is exposed to more qualified buyers.
Listen to the market
As part of your pricing strategy, your agent will put together a comparative market analysis, which is a good indicator of what today's buyers are willing to pay. It compares the market activity of homes similar to yours in your neighbourhood:
- Homes that have recently sold represent what buyers are willing to pay.
- Homes currently listed for sale represent the price sellers hope to obtain.
- Listings that have expired are generally overpriced or have been poorly marketed.
Don't overprice your home
Some sellers believe that if they price their home high initially, they can lower it later. Instead of making you more money, this strategy could end up hurting you.
- Early activity is key. As soon as a home comes on the market, agents and potential buyers sit up and take notice. If it's overpriced, interested parties will quickly lose interest. By the time the price drops, the majority of buyers are lost. When a home has been for sale too long, buyers will be wary and may reject the property.
- You'll miss the right buyer. You may think that interested buyers can always make an offer, but if your home is overpriced, potential buyers looking in a lower price range will never see it. And those who can afford a home at your asking price will soon recognize that they can get a better value elsewhere.
- You could run out of time. You may end up having to drop your price below market value if your home doesn't sell initially. Price it right the first time, and you won't end up having to sell it for less than it's worth.