HOW TO PRICE A HOME TO SELL

When we sell a house, we all want the best price.  What are the best “pricing strategies” and when do they work the best?  The big three are:

MARKET VALUE: The Appraisers Choice. A comparison of similar homes sold over the last sixth months yields a probable selling price.  What the Seattle based supercomputer of Zillow spits out when it culls the MLS to get the price for your home. UPSIDE:  It’s what most people base their offer on.  DOWNSIDE: If your home is special, it won’t show on the supercomputer  you may be underpriced. TIMING: Works in any market.

ASPIRATIONAL PRICING:  Listing a home ABOVE the standard market value can add to your selling price if a buyer falls in love with the property.  It makes your house stand out and signals that you have an elite listing. UPSIDE: You get more money if the buyer bites at list price. DOWNSIDE: If you’re too overpriced, your listing may go stale with no buyers and you risk money is the market turns down. TIMING: Works best in a rising market where buyers compete for a deal.

INSPIRATIONAL PRICING: Why would anyone price their home BELOW market value?  Simple – to attract more buyers and generate a bidding war.  An underpriced listing attracts attention and gets more showings.  If someone falls in love, they may offer over-asking to seal the deal.  UPSIDE: You may get over market value in a feeding frenzy.  DOWNSIDE: If you don’t get offers, you may get stuck having to take less money.  TIMING: Works best in a declining market where there are more competitive listings.

CALL ERIC FOR MORE DETAILS 818-451-7417