Tips for Pricing Your Home

English Real Estate Group Video Blog with Scott English

Home sellers want to net the most money possible from their home sale. Luckily, there are a few things you can do when pricing your home that will position you to do just that.

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There are a few things you can do to maximize your listing price while minimizing your expenses.

First, price under your typical search limit. For instance, if your home is worth $400,000, price it at $399,999 so that you will capture all of the buyers searching for homes under $400,000. Prices that end with 99 are more attractive to buyers as well.

You also need to create demand. It might seem risky to underprice your home. However, if you think your home is worth $400,000, you list it for $375,000, and you don’t get any offers higher than $375,000, then that means that $375,000 is the true market value of your home. Keep in mind that you can always counter or decline offers that you don’t like.

Ultimately, pricing your home below market value creates a psychological sense of urgency for buyers. Buyers will feel compelled to make an offer before other buyers see the property. By pricing your home slightly below market value, you are more likely to generate multiple offers and escalated prices.

Pricing below market value creates a sense of urgency for potential buyers.

When pricing your home, it’s incredibly important to use comprehensive comparables. Your agent should look at recently sold homes as well as homes that are active on the market. According to Zillow, you should ensure that your home is priced within 10% of the average home price in the area. If there are not many sold comparables, then price your home 10% under any current active or expired listings.

If you have any other questions about how to capitalize on your listing price or about the home selling process in general, give me a call or send me an email. I would be happy to help you!