Why the Original Listing Price Matters
Pricing your home correctly is the main factor in determining how fast and for how much money it will ultimately sell for. While most sellers want to receive the most money for their home, pricing a home too high can have negative, unintended consequences. Coming up with the right price is a balancing act best left to real estate professionals. If you price it too high, you’ll scare potential buyers away, and if you price it too low, you lose money. Plus, think of all the associated costs with homeownership that will pile up, if your home sits on the market for too long. Here are more reasons why the original listing price matters.
Setting the Right Listing Price & Why It Matters
- Your home will sell faster and for a higher price. While some sellers think it’s smart to price their home high just to see if someone jumps on it, this most often backfires. In a hot real estate market, an accurately priced listing generates more offers and perhaps even bidding wars. Contrarily, an overpriced home can scare these same buyers away, because they believe they are dealing with an unreasonable, difficult seller. Additionally, homes that require one or more price reductions generally sell for less than homes that require no price reductions.
- You attract more buyers. Accurately and fairly priced homes attract more buyers and buyers’ agents. Both will have more confidence in your property. You’ll also attract more people looking for homes within a certain budget. Going even a little bit over fair market value may cut out legitimate buyers and will diminish the chances of multiple offers and a bidding war.
- First impressions are critical to selling a home. The first 10 days on the MLS are extremely important when selling a home. It’s when your home will generate the most activity and reach the most buyers. If it’s overpriced, many people will overlook it and move on. Even if the price is eventually reduced, many of those buyers will have already found something else or lost trust in your home.
The Knickerbocker Real Estate team in Des Moines knows how to set the best price for your home. If you’re thinking of selling, contact one of our agents today!