Sellers that overprice their homes risk scaring away buyers who may think they are dealing with an unreasonable seller. Homes offered for a fair price, similar to comparables, will make buyers will feel better about making an offer. Pricing your home correctly is critically important to avoid buyer disappointment.
“Homes priced right sell quicker so set your price to attract more buyers and invite multiple offers resulting often in above-asking price.”
Attract the Most Buyers Possible from the start
Obviously, In the first few weeks of being on the market, your home will have the most showings and inquiries. Some sellers want to test the market and are tempted to price their home higher, believing they can later lower the price. This tactic of overpricing could cause you to miss out on showings. This can cause your home to sit longer on the market causing you to drop your price lower than market value to attract interest. Homes that have long marketed days become stale and buyers become suspicious that something is wrong with the house.
Clearly, the key is to ensure your house is priced right to sell immediately. A properly priced house will attract more buyers and likely multiple offers, ultimately increasing the final sale price. Overpricing a home can cause damaging effects and often lead to extended days on the market. According to the National Association of Realtors, if a home doesn’t sell within 30 days it’s a good indication that it is not priced correctly.
Don’t alienate a whole demographic of buyers
A house is the most expensive thing a buyer will purchase so it makes sense they want to make sure they bought the right one. Even if a buyer falls in love with the home, they’re still going to be looking at the comps. No buyer wants to overpay.”
Buyers shop with a set price range in mind. Your house could go unnoticed by eager buyers who use home search tools like Realtor.ca. Their search criteria for your area will be based on market value. If their search is set to $350,00 based on the market value for the area and your house is set higher they will miss your house completely. Fair market value is always the best approach so you don’t alienate a whole demographic of motivated buyers.
Factors that Determine Your List Price
A number of factors affect a home’s value and the top four are location, comparables, condition, and updates.
When it comes to assessing your location and its impact on house value, definitely look at the proximity of your home to schools, shopping, and other amenities. A house located on a busy street or the end of a cul-de-sac can raise or lower its value. Above all things, a neighborhood’s economic and crime statistics can affect the reputation of your neighborhood. It should also be factored into its home value.
Comparables refer to the prices of homes recently sold in your area. Location is only one part of a selection of comparables. You will want to closely match homes with similar characteristics such as lot size, square footage, year of construction, and the number of rooms.
When selecting comparables of recently sold homes you will also want to look at your competition. Take note of the listing prices of nearby homes currently on the market and how many days they have been on the market. This will give you a good indication of where your asking price should be set but only if they are in similar condition.
Houses that have identical floor plans could have differences like renovations, recent repairs, new flooring, or different refurbishments like the H-VAC system impacting the value. A houses condition has a major impact on its value and some buyers will pay more for a home that is well-maintained. If your house is not in good shape you may want to set your price lower. A houses condition also affects its appraisal. An appraiser will evaluate a houses appearance, needed repairs, and deterioration from wear and tear.
Furthermore, renovations and upgrades made to your home prior to selling will have a positive impact on its value. Appraisers factor updates into your rating. Are you considering making upgrades to your home prior to listing? View our helpful guide 29 Essential Tips That Get Homes Sold Fast and For Top Dollar $$$ for suggestions that will reap the best return on investment.
Lastly, price your home correctly with my Free Market Evaluation. It’s a FREE service I provide that will help you determine what your property is worth in the current Halifax market. A home evaluation will analyze your home based on location, condition, and recent market value. Then list with a price that will help you Sell Fast and for Top Dollar. Find out how much your home is worth. Visit https://www.roythomas.ca/free-home-evaluation for your Free Home Evaluation. If you have any questions regarding the Halifax Real Estate market. Contact me at 902-497-3031 or thru my website https://www.roythomas.ca/contact-us.
Roy Thomas SRES® (Senior’s Real Estate Specialist) is a REALTOR® with Sutton Group Professional Realty. Since 1991 Roy specializes in helping retirees with their later in life real estate transactions. Call Roy at 902-497-3031 or contact Roy here
If you are contemplating a move and would like a complimentary copy of Roy’s guide to downsizing entitled “Preparing to Downsize” please click here