IMPORTANCE OF CORRECT PRICING

Correctly priced properties usually sell within the first 21 days in a normal healthy market. It is essential to enter the market at the right price during these critical first few weeks, because potential buyers looking for a new home are eager to view new listing on the market. There is no point in “coming down” in price once the majority of buyers have moved on to more realistically priced properties.

Incorrect pricing leads to rejection. Most buyers will only look at homes in their particular price range and the average buyer looks at 12 homes before making a final decision. This means that your home will be compared with 11 others. It is essential therefore, that your home compares favorably. The first questions a buyer asks are:

- How long has this house been on the market?

- Why are they selling?

DANGERS OF OVERPRICING

An overpriced home will lead to fewer showings. The fewer showings you have, the fewer chances you have to get an offer on your home.

An overpriced home will attract the wrong buyers. Buyers seek out homes based on their price brackets. If your home is missing the features and amenities of other homes within the price range you’ve placed it in, buyers are going to notice. Buyers who are looking in a given price range know what they want and expect from homes. You must price your home according to its true value so that you can capture buyers who will be legitimately interested.

An overpriced home helps your competitors. If a buyer looks at your home and then visits another that is priced the same but comes with more features, your competitor’s home will look like a much better deal.

An overpriced home takes longer to sell. In some cases, overpriced homes may not sell at all.

An overpriced home that is later reduced won’t have the same impact. If you lower your home’s price after it has already been sitting on the market, it will lack the impact of a new home coming onto the market that was priced correctly from the start.