Pricing your home high is generally not an advisable strategy, for a number of reasons. First, if you position too high, your listing may well be invisible to potential buyers. Let’s say you price at $355,000, but would really accept $340,000, in order to leave yourself a margin to negotiate. But, if prospective buyers in the $340,000 range are searching in a parameter of $325,000 to $350,000, then your listing is not even going to come up on their search.
And, let’s say they do find it. They’re going to be comparing your homes to others in the $350,000 to $375,000 range, in which case it’s likely to come up short on features. Whereas, if they were comparing it to listings in the $325,000 to $350,000 range, your home would shine as the best value in its category.
Another reason not to start out high is that statistics show that listings that have had one or more price reductions and have been on the market longer tend to bring a significantly lower final sales price than a listing that sells quickly. Often the spread is as much as 8%.
Prospective buyers will pay more for a perceived value, than a listing that seems overpriced. Accordingly, we recommend that you position your home aggressively and hold firm on price when it comes time to negotiate.
If you’re a seller who has been wondering if it might finally be time to sell, email us at concierge@lizmoore.com, or click below, and we can prepare a complimentary analysis of market value for you – you just may be pleasantly surprised.
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