It’s the key ingredient you need to achieve a successful sale. It’s like playing “The Price Is Right” TV game show. When you get closest to the right price without going over, lights go off, the audience applauds, and you win the grand prize. Price it too high, you hear the sound of that obnoxious buzzer. No prize for you.
The same is true when you’re trying to find the Right Price for your home. Price it right and win the sale.
Real Estate Pricing 101
Setting the right price from the beginning significantly impacts the amount of time your home will be on the market. This is one of those real estate truths that has remained a constant, despite the ups and downs of the housing industry. If you start off at a price that higher than the competition – even just slightly higher – will reduce the visibility of your home to buyers who might otherwise seriously consider it.
Don’t Let Your Home Become “Shop Worn”
If you price your home too high you run the risk of it sitting on the market too long and becoming a “stale” listing. Prospective buyers are starting to ask, “I wonder what’s wrong with this house?” A home that has been on the market too long is much more likely to get a low-ball offer than a home that was priced right – straight out of the starting gate.
Are You In, Or Are You Out?
If you home does not fall into the right price point, you are outside the market. You’re in a sort of “no man’s land” where the buyers can’t find you. Remember, today’s buyer is pretty savvy, and even if they are not familiar with our Louisville market yet, they soon will be. With the help of their Realtor and the information they can find online, they will be up to speed in no time.
So How Do You Find The Right Price?
There is nothing magical or mystical about finding the right price. But it’s more than just math. It takes a lot of research. Any Realtor can pull comparable sales from the local Multiple Listing System, but someone with a working knowledge of your particular subdivision should know why comparable homes achieved a sale, as well as why some homes failed to sell. It usually comes down to pricing, but there could be other variables as well. You are well advised to hire a Realtor who is well acquainted with your neighborhood, current inventory, recent sales, and other detailed data that will help you win the prize – a SOLD sign in your yard.