If you list too low, you risk leaving money on the table. If you list too high, you might drive potential buyers away. While no one can claim to have a one size fits all formula, we’ve gathered our top tips to help you navigate the uncertain world of price setting.
First, it’s important to understand that in residential real estate your asking price is often more about psychology than it is about the market. For example, research indicates that buyers tend to interpret exact numbers (such as $799,875) as less negotiable than their whole counterparts (such as $800,000). If you want your price to appear firm, opt for an exact figure.
There is a reason why retail stores price items at $19.99 rather than $20. On a subconscious level, exact figures are not only perceived as more firm (less negotiable) but also more affordable. When setting the selling price of your home, pricing at $999,890 might make more sense than opting for the cool $1 million.
The bottom line is everyone loves a great deal. To the extent that even in situations where a home sells above asking price, the initial (lower) asking price is still enough to make a buyer feel as if the purchase was a steal.
3 Tips For Setting Your Price
- Analyze the competition. Ask yourself this: compared to the competition, what price would I be willing to pay for my home? This will help you position your home as the best value option for buyers. An example, go and scan the new condos in Yorkville for some condo deal opportunities.
- Choose a range. Buyers generally look for homes between price ranges separated by increments of five to ten thousand dollars, rather than exact figures. Consider setting your price near the higher end one of these price points. For example, if you were hoping for $450,000, set your asking price near the higher end of the $440-$450 range. This will widen your options and capture a larger audience.
- Be flexible. If your strategy does not generate leads, this is a clear indication that the market is not responding to your price. Alternately, if you have a steady stream of potential buyers but no offers, the issue might be internal. Work toward creating a stronger first impression, or improving your home’s curb appeal. Successful sellers are able to identify the problem and take immediate steps toward correcting it.
Selling your home is now easier than ever. Beycome.com is your online real estate resource, offering all the tools and support you need to succeed in any real estate transaction. We connect sellers & owners directly with buyers & renters, for an easy, streamlined process. Sellers save thousands in commissions and fees by dealing directly with buyers! Listing is free and only takes a few minutes.