There are three strategies you can use to price your home. Learn what they are right here.
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Home sellers in today’s market essentially have three options for pricing their homes:
- Pricing the home 3% to 5% below the last six months of your market’s data. In this scenario, you’ll have a lot of showing activity, including repeat-showings and multiple offers, which will drive your price up to market value—or more!
- Aspirational pricing. Unfortunately, this is what most sellers tell their agents they want to do; aspirational pricing is where you price your home for what you’d like it to sell for, usually above its market value. Sellers who try this often end up having to reduce their prices by up to 10% or 15% in order to sell it.
- Goldilocks approach. This is where you price your home not too high or too low. In this case, you’ll get showings, feedback, and eventually offers that are at or near your listing price.
The bottom line is that if you’re going to sell your home, you need to price it appropriately.
Based on pricing, homes tend to fall into one of three categories:
- Homes priced slightly less than comparable sales or up to roughly 3% above comparable homes. These homes will get lots of activity and will definitely sell.
- Homes priced between 3% and 5% above comparable homes. This is considered a kind of “no-man’s land,” where you’ll get the occasional showing and not much feedback.
- Homes priced 5% to 10% above comparable homes. In this case, you won’t even need to prepare your home to show, because you won’t get any activity.
As a broker, I constantly review our listings, look at how they’re priced, and assess how much activity they generate. I use this information to guide my sellers to price their home so that it will sell. If you’re thinking about selling your home, give me a call. I’d be glad to visit your home and give you an idea of how it should be priced in order to generate activity. My team and I are on standby seven days a week.