How to Price Your Home Right

How do you price your home for sale? First of all, an asking price that is beyond the current market range will negatively impact the marketing potential of your property. The Law of Contrast states that people make decisions by comparison. That means that the wrong price attracts the wrong buyers. Right pricing encourages maximum exposure, buyer excitement, and positive offers.

Bottom line - Priced right, it will sell!

Over-Pricing Your Real Estate vs. Right Pricing

Over Pricing

• Fewer buyers are attracted
• Fewer offers, if any, are received
• Marketing time is prolonged and initial momentum is lost
• Property attracts lookers and makes competing listings look better by comparison
• If property does go under contract above true market value, the lender's appraisal may fall short and the buyers will lose their financing
• Property may eventually sell below market value as bargain hunting buyers look for "stale" listings

Right Pricing

• More buyer showings in the 1st 3 weeks of heightened activity
• Great potential for multiple offers
• Marketing time is shorter and the home is a "hot" listing
• Property attracts serious buyers already actively comparison shopping in the price range
• Transaction dates and mortgage contingencies proceed smoothly when the lender's appraisal can validate the sales price
• Property may sell at the higher end of its value range as buyers move quickly to make a decision