Selling your home is stressful, especially if you don’t like the number your Realtor suggests to you as a selling price. You think your home is worth more or just that the price should be higher for “wiggle room” down the line. Bad idea. You should price your home right from the start.
Don’t start high and expect to drop the price later
The first bad idea is starting off with the thought process that you can always drop the price later. Sure, you can do that, but don’t expect the buyers to come running. There is real research on this and guess what? Homes that drop prices later sit on the market longer and sell for less. In fact, the more you drop the price, the lower your selling price will be. That’s because home buyers have a mindset about homes that are reduced. That mindset is “something must be really wrong with that house to have to drop the price.” There might or might not be, but there is no overcoming that mindset.
Setting the price higher for “wiggle room”
A higher price for wiggle room to negotiate is also a bad idea. Why? Because it means the people who would be able to buy your home at the negotiated down price won’t see it. Home buyers look for homes by price range. If you price your home out of the range of your target buyer they won’t even see it. Those who will see it are looking for homes with more amenities for their dollar, and more than your home has. They won’t make an offer that you can negotiate down. What will happen is your home will sit… for months. Then it’s a stale listing and buyers will again wonder what is wrong with your home.
What about the appraisal?
Let’s say you do get a contract at an inflated price. Their mortgage company or bank will require an appraisal. That appraisal better come back at your inflated price or that contract will go away. What are the chances of that appraisal happening?
Price your home fairly
What you want is to price your home fairly, or even just below market value. Yes, it goes against your gut feeling about your home’s value, but what it will get you is a sold home.
If you would like to get some real data about how to price your home for sale from a Clearwater Realtor, give us a call today! Deborah Ward & Associates 727-216-9247