Pricing your home is both a science and(finished)
Published on: Mar 4, 2016
Transcripts - Pricing your home is both a science and(finished)
Pricing Your Home Is Both aScience and an Art
You know your home is one of a kind. Soonbuyers will know too; you’ve just made thedecision to list. The question now is: How doyou price that unique property?
Pricing is often seen as just anumbers game – a science, ifyou will. But strategic pricing isvery much an art, relying onyears of experience combined with intuition anda thorough understanding of where your localhousing market has been and a “best guess”about where it’s going.
Whether it’s a buyers’ or a sellers’market, here’s where your realestate agent shines. A good agentknows that pricing strategies depend on manyfactors; what works for one home may not workfor another.
In a seller’s market, your agent might recommendpricing to encourage multiple offers. However, thiswill depend on the neighborhood and on thehome’s value. The best candidate for this strategyis a well-maintained home in a desirable areawhere inventory is low. In this situation, the listingprice will likely be at the lower end of a price rangethat reflects the home’s fair market value toencourage competing offers.
In a buyer’s market, the factorsinfluencing price are the samethe neighborhood and the value ofthe home but the strategy is verydifferent. Here it’s all aboutdemand and competition. Your home is in directcompetition with others for sale in yourneighborhood, and it should be priced to comparefavorably. It also should be in top condition, and youragent may recommend fix-ups and staging tohighlight its attributes.
Your agent will also look fortrends. If properties in yourarea consistently sell belowasking price, prepare foroffers below the listing price and expect to haveto adjust, particularly if you’re in a hurry to sell.
Whatever the market, a well-thought-out pricingstrategy can make the difference betweenselling quickly at a fair price and sitting on themarket with an overpriced property. It’s worthgetting it right the first time.