These are the most effective (and ineffective!) strategies that sellers typically take to sell their homes.
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If you’re thinking about selling your home, there are a few common ways that you can go about it. However, some approaches lower the odds of a profitable outcome and often slow down the selling process. Here are the three different strategies that we see most often:
- Pricing the home 3% to 5% below market price: Check out what comparable homes in your area have sold for in the last six months, then price your home under those sales. With this approach, you’ll have a lot of showing activity, repeat showings, and even multiple-offer situations. You’ll likely see your price rise to market value or even above.
- Using aspirational pricing: This approach usually adds extra length to the sale for no real reason. In this case, the seller tells their agent exactly what they want to list for, and it’s usually above market value. The seller then ends up having to reduce their price by 10% to 15%, which puts them where they should’ve been in the first place.
- Using the Goldilocks approach: This strategy involves pricing a home not too high and not too low—it’s right in the middle. This leads to an average number of showings, some helpful feedback, and an eventual offer near listing price.
Some approaches lower the odds of a profitable outcome and often slow down the selling process.
The best strategy is always to price your home appropriately for the market. Most sales fall into one of three ranges, which include:
- A bit below comparable homes to 3% above comparable homes: These homes get a lot of activity and are considered to be correctly priced.
- 3% to 5% above comparable homes: This is often considered no-man’s-land because showings are few, feedback is low, and repeat showings are nonexistent.
- 5% to 10% above comparable homes: There’s no need to prepare your home for showings because you’re in dreamland.
As a real estate professional, I’m always watching the ebb and flow of our market. My research allows me to guide sellers to the perfect price point—one that gets their house sold and maximizes their profits. If you’re thinking of selling your home, I’d be happy to walk you through the process and give you an idea of how your property should be priced. Feel free to reach out to me to schedule a consultation, and until then, I look forward to hearing from you soon.