Pricing your home correctly from the start offers several key benefits, including:
1) Faster Sale
When your home is priced right, it sells more quickly, reducing your carrying costs such as mortgage payments, taxes, insurance, and maintenance.
A quicker sale means less inconvenience to you. If you’ve ever moved, you know how much energy it takes to prepare for showings—keeping the home clean, arranging for pets or children, and adjusting your lifestyle.
Proper pricing helps your home sell faster, reducing these demands on your time and energy.
Pricing your home at market value also increases exposure to more potential buyers who can afford it.
Sellers who price their home too high often wait for that one buyer who will pay the asking price, but in the meantime, they may have discouraged many potential buyers who could have afforded it.
Ultimately, the final sales price may be lower than expected, as sellers often accept a much lower offer after their home sits on the market too long, increasing their carrying costs.
The three key factors that affect a sale are: location, condition, and price. While you can’t change your home’s location, you can control its condition and price.
2) Increased Agent Response
When agents see that a home is priced right, they’re more excited to show it to potential buyers.
When agents are confident the price is right, they actively reach out to their buyers, knowing the home will sell quickly, and encourage their prospects to act fast. Their enthusiasm can be contagious!
3) Better Response from Advertising and Sign Calls
Well-priced homes attract more serious buyers.
When buyers call in response to ads or signs, they are less likely to be discouraged if the price is reasonable for the area.
Serious buyers are knowledgeable about home prices in the neighborhoods they’re looking in and will not waste time on homes they consider overpriced.
4) Higher Offers
Homes that are priced right generate excitement and attract multiple offers.
Buyers fear missing out on a great home, so they act quickly when they know the price is fair.
Sellers are also less likely to receive "lowball" offers when the home is priced correctly.
5) More Money for Sellers
When a home is priced right, it can actually lead to a higher sale price.
A well-priced home creates market excitement, which can drive up the sale price and result in fewer carrying costs.
Sellers ultimately net more money from both the higher sale price and the reduced costs of carrying the home.
Key Takeaways:
- Location, condition, and price are the three factors that affect your sale.
- You can’t change the location, but you can control the condition and price of your home.
- Condition: Maintaining your home inside and out shows pride of ownership and reassures buyers.
- Price: The right price should be based on recent sales of comparable homes in your area. Pricing your home correctly when you first list it is crucial, as this is when your property gets the most attention from buyers.
Many sellers believe they should test the market by listing their home higher, but this often leads to lost opportunities. As your home sits on the market, you risk losing potential buyers who may have been interested on day one. For every month your home sits unsold due to overpricing, you incur additional costs like mortgage payments, taxes, utilities, insurance, and maintenance. Plus, you delay making the move you want.
In short, pricing your home right from the start can save you thousands and help you make a quicker, more profitable sale.
