When a homeowner decides it’s time to sell their existing home, it could be for any number of possible reasons! Some are obvious, such as financial challenges, job relocation, changing personal needs, priorities, etc., while other motivations may be more personal, etc.! Regardless, however, in my 15+ years as a licensed real estate seller in New York State, I have learned, and firmly believe, that a primary initial decision, one that often has significant impacts, is the price of a property. initial price, when the house is originally put – on – the – market, to sell. Basically, there are 5 basic strategies, for pricing your house, for sale. With that in mind, this article will briefly attempt to consider, examine, review, and discuss what they are and why they matter.
one. High end range: Especially in these times, where, we see, a combination of limited available inventory, near-record low mortgage interest rates, and a seller’s market, many homeowners seem to prefer to price their homes on the higher end. , of the range! In some cases, this strategy achieves its goals, but often the risks, houses that do not end up selling using this strategy, should only be considered when the seller is willing to take some risks (hoping for higher rewards) and is not under time pressure.
two. Middle of the range: In most cases, the smartest approach is to price a home, in the middle of the suggested range, by preparing a professionally designed/created competitive market analysis (often referred to as a CMA). This often creates strong demand from qualified potential buyers!
3. Lower third of the range: There may be several reasons for this quote price approach! It usually creates significant demand from qualified buyers, and helping to sell the house, for the best price, in the shortest amount of time, with a minimum of hassle!
Four. Prices above the high point: During certain real estate markets, such as the one we have been witnessing for several months now, we often see listing prices set, above the high end, of the indicated range! When prices rise quickly this can help get more money for the house, but since most buyers use a home loan to help finance/pay for the house, doing this risks home appraisals! that do not justify, perhaps, the size of the desired loan!
5. Below the lowest point: The establishment of an initial quotation price, below market levels, may be indicated under certain circumstances/conditions. This approach can be effective when a seller wants a faster sale and believes that creating a so-called bidding war may make sense. It can also be a good approach, for marketing houses, with some unusual circumstances, needs, goals, and priorities!
Whatever strategy or approach is used, it is important to realize that there is a significant difference between listing and asking prices. Will you be an educated, informed and smarter home seller?