May 2011 Market Update
The Spring Market is underway. For those of you thinking about selling, it is important to realize how vital the Art of Pricing is to the sale of your home.
All sellers want the highest price possible for their homes, but the strategies to get there are not always intuitive. In certain circumstances, pricing low can be more effective than pricing high, while in others, pricing above market value can be a winning strategy. In most cases, however, the optimum pricing strategy is to price within 10% of market value and let the market decide. After all, the ‘list price’ comes with a caveat: Or Best Offer.
Top 5 Reasons for NOT Pricing High:
- 1. You lose out on potential buyers who put a price cap on their property searches.
- 2. Serious buyers question the motivation of a seller with an overpriced listing.
- 3. You provide a strong comparable for your neighbours who are properly priced. You are effectively selling other people’s well-priced homes.
- 4. Buyers assume that properties which remain on the market for long periods of time have something inherently wrong with them.
- 5. Other agents will be more hesitant to show your home.