The asking price you set for your home significantly affects whether you will profit in the sale, how much you will profit and how long your home will sit on the market. My knowledge of the overall market and what’s selling – or not selling – will help you determine the price. The goal is to find a price that the market will bear but won’t leave money on the table.
Here are some points to consider:
Time. Time is not on your side when it comes to real estate. Although many factors influence the outcome, perhaps time is the biggest factor in whether or not you make a profit and how much you profit. Studies show that the longer a house stays on the market, the less likely it is to sell for the original asking price. So, if your goal is to make money, think about a price that will encourage buyer activity (read: fair market value).
Value vs. Cost. Pricing your home to sell in a timely fashion requires some objectivity. It’s important that you not confuse value with cost – in other words, how much you value your home versus what buyers are willing to pay for it. Don’t place too much emphasis on home improvements when calculating your price, because buyers may not share your taste. For instance, not everyone wants hardwood floors or granite countertops.
Keep it simple. Because time is so important, make it easy for the buyers. Stay flexible on when we can schedule showings. Avoid putting contingencies on the sale. Don’t let a minor detail like move-in date could cause you to lose the sale!