Setting a Home Price
Setting a price to sell your home and getting buyers in the door is a science and not a science.It’s tricky! To get the right offer in a short period of time and have that offer appraise to value as well, is normally the goal. Ideally, we would like to see your home selling experience be one that is easy and smooth for you. We put together some suggestions for you.Let us do the research for you and put the sale together, call us
Sharon Lewis Homes and Let’s Get You Moving! (r)
Have you ever gone into a store and seen a price that is $2.99? Most stores price that way, just under the ‘00.00’ number, so its not $3.00, its perceived by many as $2.00 dollars, there is a proven psychology called, you guessed it, ‘Psychological Pricing’ You see it everywhere, car lots, grocery stores, retail shops and in Real Estate. Pricing it like that has the buyer believing the price is more compelling according to some experts…..quite frankly, if I was buying another home, I don’t think that would work on me.
Let Buyers Find Your Home Sale
Our buyer clients always give us a price range, along with the number of bedrooms, baths, specifics for the property etc. and then we set up an automatic search for many buyers, up to (not past) that price point. So…..if you price your home at $605,000 instead of $600,000, guaranteed, my clients will miss you on the first go-round and maybe all together if they are finding enough homes to look at. Price it smart, round it off at the 600 (or whatever price range you are in) Not to throw a wrench into this, however, you can’t price every home at ‘000’ some homes will not comp there, they will come at 650, or 625 etc. So if that is where the comp is, price it that way.
I once had a client who felt that his home should be priced at $534,869.23 for no reason. He thought the home would stand out. Even though I explained to him it would not, he insisted on that pricing. I received calls from buyers asking me, what was wrong with the house, what was up with the strange pricing. Don’t have Buyers questioning why the house has weird pricing, they will then start questioning other things in the home. Give the buyer a price they can process.
Don’t Set and Forget Your Price
Pricing- An appraisal is only good for the day it is done, you know why? Because the day after or the week after, another home in the area that is similar in age, location, square footage etc, can close for a higher or lower price which will have prices in that area ‘re-set’. Your agent should be having on-going conversations with you about pricing. That agent should be running a CMA (comparative market analysis) on your home once a week to make sure you are priced correctly.Market conditions change and you have to be ready to react and flexible to be able to modify your home pricing. In fact, if you priced it correctly in this current seller’s market, your home should sell within the first ten days. I occasionally have clients who insist on a price that is not in line with the CMA (comparative market analysis) I give them and insist on pricing higher than the market…..the home doesnt sell and we wind up chasing the market. If you hire a top agent, listen to them. They know what they are doing.
Breaking Up is Hard to Do….
Very often my clients are emotionally attached to their homes. They aren’t able to objectively set a price ( or understand our staging requirements.) I ask that they think like a buyer, not a seller. And show them homes for sale near them that are similar ‘products’ And then I ask them, if they had to choose between say three homes on the market, one priced at 489K, one at 510K and another at 560k, all similar in size, age and location, which as a buyer would they choose. You guessed it, they go with the 489K home.
At Sharon Lewis Homes, we are happy to assist you in setting a fair selling price that will earn you top dollar! Contact us today at (919) 561.0411 for further assistance. Let’s Get You Moving!
Sharon Lewis Homes is at Keller Williams Realty, Cary