Maxims For Pricing A Home Determining an appropriate list price is “an art”. Below are industry maxims regarding “the art of pricing a home”
While the home owner determines the asking price, the market will ultimately determine a home’s value (the sale price).
Price is the most important part of the marketing plan.
The list price must position your home IN the market … not just ON the market. In other words, fit the product to the market … not the market to the product.
The wrong list price will attract the wrong buyers.
Marketing a home is a competition. Select a list price that will cause home buyers to compete with each other to buy your home ... rather than your home competing for the home buyers’ attention.
Nothing excites home buyers more than an accurately priced home.
A buyer is more likely to make a full price offer on a house that is appropriately priced rather than make a low offer on an overpriced home.
Overpricing a house does not change the home’s value. It only changes the likelihood of a successful sale.
There is nothing wrong with any house that the right price won’t fix.
Your best opportunity to sell a home occurs within the first three weeks on the market. Price the home correctly at the beginning and you will have a successful, problem-free experience.
The longer a home stays on the market, the greater the difference will be between the initial asking price and the final sale price.
The longer a home stays on the market, the more it reinforces the perception that either 1) the home is overpriced or 2) there is something wrong with the house.
Overpriced homes are often used as “tools” to demonstrate to buyers what excellent values the other homes on the market are.
Be better than the competition. Position your home so that it is the best house in its price range. By doing so, you will eliminate comparisons and destroy the competition.
The condition of a house is a primary issue in determining its value. What really concerns buyers is NOT that they might be paying too much for a home, but rather, that the home might require expensive repairs and become a “bottomless money pit”.