First Listing Price and Overpricing
How to Price The Home Right and Show The Owner Its Importance
Pricing their home right is crucial to a quick sell. This is another key we use to show FSBOs the difference agents make. There are serious dangers to pricing too high or too low, although pricing too high is really a death threat to the prompt moving of your property.
Danger Zone #1: Pricing Below Value
Possibly, a home that is priced too low could eventually aid you in the start of a bidding war so that the price is driven above what the sellers wanted to make in the first place.
However, conditions must be ripe for this kind of arrangement to work. Plus, well-laid, professional plans are crucial to this maneuvers success. On the other hand, and what normally happens when a home is priced far below market value, potential buyers are left feeling as though there is some hidden, ominous fault with the property – even if there isn’t.
That kind of mentality can leave a home simply hung out to dry, which wastes valuable time. The longer a property stays on the market, the less money sellers are likely to make.
Danger Zone: Pricing Above Value
Pricing too high, obviously, leaves the home sitting stagnant in the water while all of your neighbors’ homes are snatched off of the market. Why would anyone purchase your home if one very similar is priced thousands lower nearby?
Common sense says that the home is not going anywhere anytime soon. Now, you’re sitting and playing the waiting game while your peak selling time is slowly dwindling away.
These dangers are why agents need to offer a free price evaluation. This is one of the last selling points to show them your benefits.