How Pricing Your Home Right Makes A Big Difference

Even though there is a big buyer demand for homes in today's low inventory market, it does not mean you should price your home as high as the sky when you are ready to sell.  Here is why making sure you price it right is key to driving the best price for the sale.

If you have ever watched the show "The Price Is Right" you know the only way to win the game is to be the one to correctly guess the price of the item up for bid without going over.  That means your guess must be just slightly under the retail price.

When it comes to pricing your home, setting it at or slightly below market value will increase the visibility of your listing and drive more buyers your way.  This strategy actually increases the number of buyers who will see your home in their search process.  Why?  When potential buyers look at your listing and see a great price for a fantastic home, they are probably going to want to take a closer look.  This means more buyers are going to be excited about your house and more apt to make an offer.

When this happens, you are more likely to set up a scenario with multiple offers, potential bidding wars, and the ability to drive a higher final sale price.  At the end of the day, even when inventory is tight, pricing it right makes a big difference.

Here is the other thing, homeowners who make the mistake of overpricing their homes will eventually have to lower the prices anyway after they sit on the market for an extended period of time.  This leaves buyers wondering if the price drops were caused by something wrong with these homes when in reality, nothing was wrong, the initial prices were just too high.

It you are thinking about selling your home this year, make sure you have a real estate professional on your side to help you properly price your home and maximize demand from the start.