Setting your listing price is the most important aspect of the home selling process. Whatever your reasons for selling your home, you’ll have a number of decisions to make. Crafting your listing and to begin receiving offers from home buyers all begins with your initial listing price. Let’s take a look at just a few reasons why setting your listing price is the most important factor in your home sale.
You’ll scare off potential home buyers with a listing price that the market will not bare. The majority of interested home buyers become aware of your home in the first few days and weeks after you place your home up for sale, so it’s critical that your price isn’t set so high that it scares a number of home buyers off.
Some sellers believe it’s better to price high and let home buyers submit lower offers. The concept can be no further from the truth and work against you. It’s better to have your home priced comparable to the market and you can always refuse offers that you deem are too low.
Your listing price directly impacts how long it will take your home to sale. If you’re interested in seeing your home sell quickly it’s best to have it priced competitively. Home Buyers will be shopping around for similar homes in your neighborhood and competitive areas. If there are other listings with lower prices on the market you will find it will take you a while to get your home sold. Additionally, if you do find a home buyer that is interested, they’ll likely try to enter into price negotiations with you which can extend the length of the sale by a week or more as you go back and forth to reach an agreement.
A low price means leaving money on the table and an issue commonly found when you don’t use a real estate agent to help you price right. While pricing too high can cause issues with your sale, pricing your home too low isn’t going to benefit you either. You’ll likely find that you receive a high number of offers very quickly and end up leaving some of your home’s equity on the table – equity that you could easily have realized as buyers would have been willing to pay the difference.
Statistics compiled by the National Association of Realtors have shown home owners who sell a home themselves begin by under or over pricing. In 2012 FSBO’s accounted for 9 percent of all homes sold and the typical FSBO sold for $174, 900 as compared to similar homes sold by and experienced real estate agent for $215,000. In 2013 home sellers using the FSBO method remained at 9 percent and although they have increased the sales prices slightly, they’re still leaving thousand on the table and getting worse at pricing a home. For 2013 the typical FSBO sold for $184,000 as compared to a similar homes, which sold by an experienced real estate agent for $230,000.
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A SIMPLE HOME SHOPPING INSPECTION TOOL
Organizing your home shopping experience affords a wise decision making process. This simple home inspection tool makes your ultimate buying decision a smart one. To print this document click on “Open in New Window” located at the lower right corner; click on “File”; then click on “Print”. In the center of the screen you will have the option to “Create A Printable PDF of the Presentation”.