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© Vicki Lloyd 2001-2

Be very careful about setting your price!

Selecting the list price for your home is both a science and an art, and an experienced agent is your best resource for determining this.  Recent sales, current inventory levels, as well as quality of the specific homes on the market, current interest rates, consumer confidence levels, the time of the year and even the weather can influence the probability of selling your home within your time frame.

Especially in a “seller’s market” like we have experienced during the past 3+ years, many people think that they should start by setting their price high, with the thought that they can “always can come down” or buyers can “make an offer.”

This can be a HUGE mistake! There are several problems that result from this type of thinking:

• Selling your home is a competitive event, with no trophy or ribbon for 2nd place! Buyers always buy the home that offers the best value for their money. If you over-price your home, it will be in competition with homes that are bigger, newer, more upgraded or have special features that yours does not. If you want to win (SELL), you must be the best in your class (price range.)
   
• The first 2 - 3 weeks on the market are the most important.  The buyers who are really ready (educated, know the values and are currently waiting for the right house to become available) will not bother looking at an over-priced one.
   
• If you reduce it later to the proper price range, it will already have been on the market for a while and the excitement of a well-priced new listing has been permanently lost.  You will then be waiting for new buyers to begin their home search.
   
• As new buyers enter the market, they may see the house, but the “# of days on the market” will show how long it has been exposed and not sold. (Many buyers ask how long a property has been listed, and will wonder what is wrong with it, since nobody has bought it.)
   
• Unless a buyer has all cash, (which is fairly rare) the purchase contract will probably specify that the buyer’s lender must confirm the value by appraising it.  If the lender decides it is over-priced, the loan will be rejected and the deal will fall apart!

Some sellers believe that the homes that sell quickly must have been under-priced, but the truth is, that if the property was properly priced at the beginning, the most-likely (qualified and educated) buyers rushed to see it, recognized the value, and took immediate action to make it their own. It is not uncommon in this situation for several buyers to make offers at once, which can ultimately result in the home selling for more than the list price!

To see what is currently on the market, or recently sold in your neighborhood, sign up for my “Free Market Analysis” and I will send you back the info tomorrow!

Marketing your home .... (Continued)