The Benefits of Proper Pricing
There are several benefits of properly pricing your home. They include:
- When your home sells faster, you save carrying costs which include mortgage payments, taxes, insurance, and maintenance.
- A quicker sale creates less inconvenience for you. If you have moved before, you know the energy it takes to prepare for a showing: keeping the home clean, arranging for pets, and children, and altering your lifestyle.
- Proper pricing creates less demand on you, by helping your home sell faster.
- At market value, your home will gain exposure to more prospects who can afford the price.
- Sellers who list at that high price are looking for that one buyer who will pay it. Sellers often do not realize that they have discouraged many potential buyers who could have afforded the home.
- The final sales price is probably one that will be affordable to more purchasers.
- Sellers often accept a much lower price at a much later date since that one buyer willing to pay the higher price never comes, costing you more in carrying costs.
- The three major things that affect a sale are location, condition, and price. You cannot control the location, but you do control the condition and the price.
INCREASED SALES AGENT’S RESPONSE:
When salespeople are excited about a home and its price, they make special efforts to contact all of their potential buyers. Knowing that it is priced properly for its market, they expect it to sell soon and encourage their prospects to act quickly. Their excitement is contagious!
BETTER RESPONSE FROM ADVERTISING AND SIGN CALLS.
- Ad calls and sign calls to Realtors OR By Owners turn into showings when the price is not a deterrent.
- Serious prospects are well-educated about asking prices in the areas they are seeking.
- Serious prospects do not waste their time on a home they consider overpriced.
- Buyers fear they might lose out on a good home when it is priced right.
- Sellers are less likely to receive “lowball offers.”
- Better pricing attracts multiple offers, too!
MEANS MORE MONEY TO SELLERS:
- If a home is priced right, the excitement of the market produces higher sale prices.
- Sellers net more in terms of the actual sale price and by less carrying costs.
- The three things that affect a sale are location, condition, and price. You can change two out of the three of these. You cannot change the location. You can control the condition by how you maintain your home inside and out. Good maintenance shows pride in ownership and gives a possible buyer a comfortable feeling about the condition of the home. Price should be determined by recent sales of comparable homes in your immediate area. Pricing a home right at the time you first put it on the market is important since that is when it will get the most attention from buyers. You may think you want to start out higher and test the market but this usually results in you losing buyers that may have been interested from the 1st day on the market, not 6 weeks down the road. Think of it this way, for every month that your home is not sold due to being priced too high, you have lost money due to another mortgage payment, taxes, utilities, possible association fees, insurance, and maintenance and by not being able to make the move you want to make. A quicker sale can save you thousands so being priced right at the beginning is very important.