Every seller’s goal is to get the most amount of money for the value of their home. Which, in many cases, turns into a price war. Sellers would rather price their home aggressively and hope that buyers take the bait.
Experts struggle with the mis-perception around pricing strategies. The more successful approach, they have found is to price appropriately from the start and if it doesn’t sell within a predetermined time frame, cut deep to avoid the downward spiral of reductions. Reputation is also important. You’ve heard it before. “The price dropped $10,000 for the third time,” says a buyer. “I wonder what’s wrong with it?”
Pricing strategy is as much strategy as it is psychology. So how do you avoid this slow death by price reductions? Don’t drop the price!
Listen to the Experts: Your real estate agent’s job is to help you price your home properly from the start. They understand the markets and the current buying habits and will be able to help you create a pricing strategy that sells your home as quickly and for as much money as possible.
Pay Attention to the CMA: The Comparative Market Analysis (CMA) is a tool your real estate agent uses to determine an initial value of the home. The report is based on considerations like size, location, age, square footage, number of room, bathrooms, updates and any additional extras like a pool.
Keep an Objective Mindset: If you’ve been in your home for a while, you’ve probably made some special memories. Whether it was your first home after getting married, or after the first child, you bond with your humble abode. Which can make it hard when someone names a price that feels unworthy of something you hold close to your heart. But selling your home is a business transaction and emotions can blur your ability to see a pragmatic pricing approach.
Don’t be lured by gimmicks: Even if you don’t drop the price of your home, you could feel pressure to offer up contingencies. Some sellers will throw in TVs or furniture and appliances. Bonuses are ineffective because the cash doesn’t compound for the buyer overtime. Material items that aren’t directly connected to the home actually depreciate in value.
Ask Questions: Part of your real estate agent’s role is to help you understand the process and the intricacies that make a successful and quick sale. If you don’t understand something or feel like something isn’t right, ask questions and address your concerns upfront.
While there is no true guarantee that you can sell your home without dropping the price, remembering that your real estate agent is a trusted expert and that the market determines the price in most cases, you’ll be able to make the best decision possible.
Want to know the value of your home right now? Contact me below for a Competitive Market Analysis.