When it’s time to price your home for sale, you’ll need to channel your “Inner-Goldilocks” to find a price that’s “just right” to attract buyers while reflecting the current market and still putting the most money in your pocket.
The fairytale Goldilocks had the luxury of time to find exactly what she needed, but it doesn’t work that way when you are selling your home. When your home hits the market, it needs to appeal to the right buyers at the correct price point. Let’s consider a few basic guidelines:
Don’t price it too high
Your home’s market debut is your first (and often best) chance to get the right buyers through the door. It’s essential to get the pricing right. If your home appears overpriced, you run the risk of buyers moving on from the listing to seek a more appropriately priced property. Remember, buyers have access to a great deal of information and a savvy buyer can sniff out overpriced homes more quickly than ever. Of course, you can always do price reductions, but by then, many homebuyers have moved on.
Don’t price it too low
Listing a home below its market value is a popular strategy used by some sellers to generate excitement regarding the property and possibly spark a bidding war. This strategy was a common and successful practice during the pandemic when inventory was low, interest rates were low and buyer demand was soaring.
But pricing your house too low may result in leaving some serious money on the table if the desired “frenzy” does not materialize. Additionally, bargain-basement prices potentially turn some buyers away, as they may fear underlying problems with the house.
Do price it “just right” by considering the comps
Comparable sales or “comps” are recently sold homes that are like your property in terms of size, location, and features. Your agent will compile a Comparative Market Analysis (CMA) to help you determine a realistic listing price.
Data allows sellers to “pull back the curtain” on home sales to validate the pricing of their homes. The old mantra remains: It doesn’t matter how much your neighbor thinks your home is worth, what the plumber thinks your home is worth, or even what Goldilocks thinks your home is worth.
I would be happy to help you determine the right price for your home. I offer experience, neighborhood expertise, and good, old-fashioned hard work to get your home sold for the best price possible. I want to be your Folsom Realtor. Check out my tips for sellers and give me a call today! (916) 203-3765
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