Home Sellers Tip #2

Importance of Intelligent Home Pricing

Home Pricing Pyramid

Home Pricing Pyramid(Based on REBGV’s Database)

As you can see above, pricing your home correctly is directly related to how easily it will sell.

At the center of the pyramid is fair market value – this is where a reasonable percentage of buyers would purchase your home. When you under price your home, naturally the percentage of buyers increases. Conversely when you over price it, the percentage declines.

That is why many local sellers would choose to take the strategy – “Ask Low, Sell High”. It means a seller intentionally goes with a low asking price, sometimes could be substantially lower than the “Fair Market Value”, in order to attract as many buyers as possible to compete in multiple offers. Then the seller has a very good chance to sell in the maximum price, most of the time it could be even higher than the “Fair Market Value”, because of emotional competition. However, some of the other sellers would ask for a high listing price and leave enough room for negotiation, expecting a gratifying reward after a seesaw battle. The side-effect might be having no showing and serious offer for a long time.

In all,a property priced at market value will attract more buyers than a home priced above market value. Consider that a competitively priced property will also attract a greater number of potential buyers and increase your opportunity for a quick sale. If you are wondering what kind of strategy is the best for you? Pick up the phone or write an e-mail to ask Henry for advice.

Next tip: The Effect Of Over Pricing