The Most Important Thing in Selling Your House is Price.

Why Does the Original Listing Price Matter So Much?

First impressions are lasting, and nowhere is this more evident than in the housing market. The initial impression that your home’s pricing makes on potential buyers can mean the difference between a speedy sale and a house that sits on the market for months. Typically, a new listing gets the most attention from buyers’ agents and internet searches in the first two weeks than at any other time. Interest and demand wane after 21 days or so. As such, it’s important to get your price right from the very beginning.

The right price can attract home buyers, quickly. But many buyers will scroll past your home if it’s not priced reasonably. Buyers do their research with a set price range in mind, so you want to target buyers who’ll be willing to make an offer based on what your house is really worth. One common, and ill-advised, the technique is to set the price on the high end to see what happens and then progressively lower it over time. Although tempting, this strategy can backfire. For one, it will waste the peak of the attention your home gets in the first few weeks. When a home is overpriced from the start, buyers may not even bother to give it a second look or make an offer.

Also, pretty much every real estate listing service displays the length of time that homes have been on the market. If your home sits on the market for an extended period of time, it will raise red flags for buyers and develop the reputation that there’s something wrong with it. Some buyers will see that as an opportunity to lowball you. You may have to make a significant number reduction in order to attract buyers. But keep in mind that the longer your home stays on the market, the lower you can expect the final selling price to be.

Setting the list price on the low side in an attempt to stir up interest and start a bidding war can also work against you. Buyers may assume that your home is worth its list price, which could make you lose thousands of dollars. Your best bet: Know how much your house is worth and price it right from the beginning.

Benefits of Pricing at Market Value

• Attract more buyers: Proper pricing will open your home up to more prospects and buyers’ agents.
• Less inconvenience: Pricing at market value shortens market times, which reduces the hassles of keeping your home clean, staging for showings, and making arrangements for pets and children.
• Faster sale: In a low inventory market, a properly priced home could receive multiple offers and get a faster sale.
• More buyer confidence: With the right pricing, buyers may reason that you’ve made sure your home is in good condition and worth the list price.
• Higher sales price: When you offer your home at its true market value, you increase the chances of getting good offers and a higher sales price.

So, How Do You Get the Right Price?

To market your house competitively, the price should be set based on the facts. Think local market conditions, seasonality, and your home’s size and usable space, age and condition, location, and upgrades. Here are some tips to help you price your home right and make buyers bite:

• Work with your real estate agent and get a Comparative Market Analysis
• Understand the market you’re in
• Price it to be found in real estate searches
• Put your feelings and personal attachments aside
• Do not overprice or underprice because you have “time”
• Leave some wiggle room, but don’t overreach
• Put yourself in the buyer’s shoes
• React swiftly and adjust the price if necessary

The Bottom Line

When you want top dollar for your home, it’s smart to work with a top-notch Grand Rapids real estate agent, have an idea of how much your property is worth, and set the right list price from the start. At The Sprich Group, we have extensive experience in home valuation in the local area and can help you make a more informed pricing decision. Contact us today.