Pricing homes involves comparing similar properties, making adjustments for the differences among them, tracking market movements and taking stock of present inventory, all in an attempt to come up with a range of value that your home could sell for. The value a Realtor, or an Appraiser, can place on your home is an educated opinion, where the true value comes from the buyer who puts in an offer to purchase.
When the average seller sits down to interview real estate agents it's easy to get caught up in the excitement over choosing a sales price. More money means more financial opportunities for the homeowner. Unfortunately, uninformed sellers often choose the listing agent who suggests the highest list price, which is the worst mistake a seller can make.
Is it Too Low?
Homes sell at a price a buyer is willing to pay and a seller is willing to accept. If a home is priced too low, priced under the competition, the seller should receive multiple offers to drive up the price to market value. So there is little danger in pricing a home too low. The danger lies in pricing it too high and selecting your agent solely on opinion of value.
Is it Too High?
Many sellers don't understand that overpricing can actually result in your getting LESS for your house than if you had priced it correctly in the first place. Knowledgeable agents and buyers often won't bid on an overpriced home. If your house is dramatically above market, why waste time? Their time is better spent previewing homes that are priced realistically. By the time you reduce the price to where it should have been priced in the first place, many of your best prospects will have bought other houses and you will be forced to further reduce to move your property, or worse yet, take it off the market.
Contact Us For an Opinion of Value
Give us a call and we'd be happy to setup a time to perform an opinion of value on your home. This service is free of charge.