Just like the classic game show "The Price is Right" the closer you are to the actual market value when selling your home, the more you win.
The right asking price is the key to selling your home for the most money, in a reasonable timeframe and with a minimal stress and worry.
Of course there are plenty of other factors such as staging, curb appeal, updates and more. In the end the Buyer is influenced towards choosing your home over another by your asking price.
Your list price has to represent compelling value to prospective Buyers. This perceived value will first get them in the door and second motivate them to make an offer before someone else does.
Common objections from Buyers such as "There is too much work" or "The bedrooms are too small" have one very important unspoken caveat. That silent additional comment is "For the price" speaks volumes and needs to be heeded.
What you are striving for is more like. "There is a bit of work but for that price we can do it and still get a good buy” or "The bedrooms are a bit small, but for that price we can manage"
The right asking price will encourage these responses and result in positive offers.
Most Common Pricing Mistakes
1. Adding too much extra for negotiation
We hear it all the time. “Well, you can always come down, but you can never go back up”. Though there is some truth here, padding your price excessively will discourage offers and even showings. Potential Buyers may simply feel the price is unrealistic and will wait till “they get realistic”. Keep in mind that the majority of homes sold on MLS sell at 97-98% of their asking price.
2. Emotional Value VS. Market Value
For the Buyers of your home, it’s all business. They are shopping for the best value on the market. Period! Your history and attachment to your home has no value for the Buyer. The fact that little Johnny and his buddies played ball hockey under the streetlight is not a feature they will pay for. You need to distance yourself from the emotional value of your home and focus on the business decision being made by the Buyer.
3. Not accepting your Realtors Insight
Your Realtor will do exhaustive research into comparable sales and homes which will compete with yours. They are working in the local market everyday and see a lot more homes than you or your neighbour who might be offering his opinion. Work together with your Realtor and be willing to heed the insight her knowledge offers.
4. Adding excessive value for recent, often deferred maintenance.
You can’t let your failing roof go for years, have it reshingled prior to listing and then expect the Buyer to pay the bill. Buyers expect the home they buy to be in reasonably well maintained condition. You can’t add on the full cost of maintenance items. A new roof will help a Buyer make a decision but won’t result in a lot more money.