How do you set the Right Price?
- Measure your home against similar neighborhood homes that have recently been sold or are currently on the market.
- Determine what features make your house stand out among others currently on the market. After all, buyers are comparison shoppers. Weighing the spending of a reasonable amount of money on cosmetic or structural fix-ups that might enhance the marketability of your house in order to earn the highest possible sale price is a good idea.
- The right price is usually within 5% of market value (a constantly changing factor) and usually results in a fair-dollar sale within a reasonable amount of time.
Why is overpricing risky?
A price more than 5% over market value may have NEGATIVE results:
- Buyers may resist inspecting your home because they can find better values elsewhere. Just think, overpriced houses tend to sell the competition first.
- Potential buyers who can’t afford the price don’t bother to look or even make offers in the first place.
- Even if we find a buyer willing to pay an over market price, they may have difficulty getting financing. Lenders usually don’t approve a loan if the appraisal is lower than the contract price. This delay from a failed sale can mean missing out on the critical first 30-day marketing period.
- Your unsold home may begin to get “stale” as the marketplace assumes there is something wrong with the house the longer it sits on the market.
- Later down the road, to make up for lost time, you will likely be inclined to lower the price below competing houses in order to move it, ultimately resulting in a longer sale and a final price lower than if the home was properly priced well to being with.
- Remember that the first 2-3 weeks are the most critical to getting the highest amount of foot traffic and interest resulting in getting a better offer.
The above chart depicts a typical pricing scenario. If you price at or below market value you will generate more interest in qualified buyers. The higher you price your home above market value you will see a drastic decrease in the amount of buyers who will want to look at your property.
Example of Pricing
Jack and Jill live in the same neighbourhood and have similar properties. They both get their properties evaluated by a Real Estate Agent. The agent suggests listing the property at $299.900 based on comparable properties. Jack lists at $319,900 because he feels his property is worth more, Jill lists at $279,900. Jill’s property generates more traffic and more interest in buyers simply because qualified buyers would rather pay less for something that is the same and serves the same utility. Jill’s property sells within a month. Jack’s property sits for 3 months until he begins slowly lowering the asking price. Eventually Jack’s property sells for $260,000. Who would you rather be?
Hey there, I’m Matthew Taylor. I work with individuals and families looking to buy or sell real estate in Regina and all surrounding areas who are looking for professional, responsive, and honest service to find the property that is best for them and sell their home in the quickest amount of time for the most amount of money. I want my clients to be the most informed, educated, and knowledgeable when purchasing or selling a home. I’ve been a Realtor® for a few years and I’ve served over 10 families to date. The best praise I’ve ever received from a client was:
“As first time home buyers we were nervous, we didn’t know anything about the real-estate market. Mathew Taylor was an amazing realtor to work with , he answered all our questions and made sure we were taken care of. He truly had our best interest in mind in helping us find the perfect home for our little family . We have nothing but good things to say about Matthew and just keep up the good work”.
Helping people to find the perfect home for them like that, makes me so proud and drives everything I do. If you’re looking for a Realtor who truly has your best interests at heart, Then we might be a good fit. I’ve earned two degrees, one in music performance and another in music education. When I’m not helping people find their perfect home, I can be found playing music, teaching music to kids, spending time with my family and friends, or volunteering at the YWCA. Want to learn more about how we can work together? Call or text me at 306-988-7554.