Pricing your property right
The single most important decision you will make with your Royal LePage REALTOR® is determining the right asking price for your property.
The benefits of pricing right
- Your property sells faster, because it is exposed to more qualified buyers.
- Your home doesn’t lose its “marketability.”
- The closer it is to market value, the higher the number and amount offers received.
- A well-priced property can generate competing offers.
- The real estate community will be enthusiastic about presenting your property to buyers.
Determining the value of your home
- Community amenities
- Buyer supply
- Financing options
Getting to know your market
A comparative market analysis is an indicator of what today’s buyers are willing to pay for a home. It compares the market activity of homes similar to yours in your neighbourhood. Those that have recently sold represent what buyers are prepared to pay. The homes currently listed for sale represent the price sellers hope to attain. And those listings that have expired were generally overpriced or poorly marketed.
We will prepare a comparative market analysis for your home based on the most current market info. Together, we will establish the list price that’s right for your property.
The result of overpricing
A number of factors can influence overpricing:
- Extensive renos and hidden costs
- A desire to purchase in a higher-priced area
- The original cost of the home was too high
- Lack of real market information
- Building in “bargaining room”
- Emotional value
Many sellers believe that if they price their home high initially, they can lower it later. However, when a home is priced too high, it experiences little activity. Gradually, the price will come down to market value, but by that time it has been for sale too long and some buyers will be wary and reject the property. You may think that interested buyers “can always make an offer,” but if the home is overpriced, potential buyers looking in a lower price range will never see it.
The importance of early activity
As soon as a home comes on the market, there is a flurry of activity surrounding it. This is the crucial time when potential buyers sit up and take notice. If the home is overpriced, it doesn’t take long for interested parties to move on. By the time the price drops, the majority of buyers are lost.