Pricing Your Home To Sell

When preparing to put your home on the market, there are a lot of things you need to think about. Deciding if you should make home repairs and improvements, staging your home to impress potential buyers and keeping your lawn and house in prime condition for viewings and prepping to move. But one of the most important decisions you must make is how to price your home. Determining the asking price for your home cannot be taken lightly. There needs to be some psychology and strategy used to decide the price that will sell your home in a timely manner and for the most profit. You and your Realtor should identify and agree upon the approximate value of your property. You can use Comparable Sales of similar properties sold in your neighborhood to help you make this decision.

Next, you need to understand the price range for your list price. Depending on market conditions, competing properties, time of year or inventory, the price range can fluctuate. For example, a house with the asking price of $500 K can have a price range of $480 K to $520 K. Once you have determined your home’s value and have a price range in mind, it’s time to conclude what your asking price will be. This is where pricing strategies come into play.

A Note About Pricing Your Home

Did you know the best chance for selling your property is within the first seven weeks? It's true. Studies show that the longer a property stays on the market, the less the seller will net upon the sale. It is very important to price your property at a competitive market value at the signing of your listing contract. The market is so competitive that even over-pricing by a few thousand dollars could mean that your house will not sell.

An Overpriced Home:
· Minimizes offers
· Lowers agents response
· Limits qualified buyers
· Lowers showings
· Lowers prospects
· Limits financing
· Wastes advertising dollars
· Nets less for the seller

Pricing Strategies: Tips for Pricing Your Tampa Home Correctly

Appeal to multiple buyers

It may be tempting to ask for the highest price you think you can possibly get for your home. But if you price your property on the lower end of the value range, you will likely appeal to more than one buyer and you might even have a bidding war amongst buyers who want your home. Chances are you will get more than your asking price if this happens.

Utilize psychology when choosing your asking price

Be careful of too many zeros. For example, it is easier for a buyer to process $250 thousand than it is $250,000 - and $250,000.00 is even worse on the eyes. Buyers feel like they are being asked to pay more when there are more zeroes included in the price. It doesn’t change the actual price, but the perception of the price changes.

Make sure it’s visible in real estate searches

If buyers are looking for three-bedroom homes under $400 K and you have your property priced at $405 K, an automated buyer search for properties under $400 K will exclude your home, meaning you will miss out on a lot of potential buyers. Experienced Realtors will set up search parameters for buyers that include properties listed a little bit more above their price ceiling. Keeping in mind that home prices are flexible, buyers could find the perfect match on a home above their limit, but with the possibility that it is in within a reasonable range of price or that it will be reduced.

Have a price contingency plan before listing your home

You may have very high expectations regarding the worth and appeal of your home. If you insist on asking top dollar for it, you may get lucky (depending on the current market) and get it, or you may not get any full price offers at all. In that case, it’s important to have a contingency plan lined up before you list your home. That way, if you must lower your asking price, you will already be prepared for it and it won’t catch you off guard.

Be flexible

Setting an initial asking price is just the beginning of your home selling process. A lot of different factors may come into play when selling your house, and you won’t be able to anticipate all of them. Being flexible will allow you to react quickly to changing Market Conditions or new information and you will be more likely to get the best price for your home.

Ready to Sell Your Tampa Home?

If you decide you are ready to sell your home, contact the real estate professionals, Linda & Craig Nowicke at Inside Tampa Homes and let them assist you in getting your house on the market and sold for the best possible price!  Call them today at 813-675-5030 or 813-728-3880.

For more information on how to avoid mistakes when selling, download our free report called "Avoiding the Top Ten Biggest Selling Mistakes". This report is offered to all guests.