Wednesday, March 2, 2022 / by Cindy Bunch
Pricing Strategy: 3 Options When Selling Your House
Did you know that there are 3 ways to price your home when listing to sell? We all strive for top dollar when we list our homes for sale, so having a strategy really matters! There are many local factors to guide your home pricing strategy, but in general there are three methodologies to consider.
Strategy Number One: Price your home higher than your real estate agent’s suggestion
Sellers sometimes say “We can always reduce it later if needed.” Well, this can be risky because there are plenty of studies that show pricing too high can net you WAY less at the end of the deal.
I can show you several instances where this was the case and we agents really don’t like this option because we never want you to leave money on the table at closing.
You miss out on significant exposure with this pricing strategy if the list price is above what is reasonable for the market - even in a hot seller’s market! Put yourself in the home buyer’s shoes: if you see a home that meets your criteria, but is priced above all the other homes you’ve been looking at, are you going to pursue?
Listing above the perceived market value could lead to your house being on the market longer. Higher days on market gives potential buyers negotiating leverage with lower offers.
If you insist on pricing your home for higher than it should be, don’t stay too high for too long! While price reductions do attract fresh viewers, consider how much you value the speed at which your home sells.
Strategy Number Two: Pricing your home exactly at the market price compared to similar homes in the area.
This pricing strategy should sell quickly, but may not have quite as many offers as possible. Even in a seller’s market, your home will have competition with this option because the majority of homes are priced at market value.
There is not too much else to say on this strategy because it is straightforward and realistically in step with the local market. This is why it’s the most popular pricing strategy!
Your home will definitely sell faster than the house priced too high, but likely not as quick as a house priced right UNDER the market which is the third pricing strategy option.
Strategy Number Three: Pricing your home right under the market value
This is where the magic happens! We’re not talking about tens of thousands under, but just a little less.
This option sets you up for a bidding war! A slightly below market price attracts potential buyers to your home and many times generates more than one offer out of the increased exposure.
Think about it: it is human nature to seek out a deal. When your home is priced just under market value and you’re drawing in more buyers submitting offers, it is possible to leverage this to create perceived competition causing buyers to submit more aggressive offers in order to win.
Every situation is different and there are always local factors to consider when developing your pricing strategy, so it’s super important to talk to your local agent about what your area’s statistics are like. Usually options number two and three are the best ways to get top dollar for your home.
Now that you have a better understanding of your options for pricing your home to sell, are you curious about other ways you can get top dollar for your home? Don’t miss 10 Ways to Sell Your Home for Top Dollar.
This article is brought to you by Cindy Bunch, Realtor with the Bunch Team Realty Group at Keller Williams Atlanta Partners. Learn more about our team and reach out to us anytime to help with your real estate goals.