Pricing Your Home Correctly

One of the hardest parts of selling your home is pricing. Everyone wants the most value for their home, which may incline them to price their home as highly as possible. This isn’t always the best approach. If your home is priced too high, it may turn off potential buyers and prolong the selling process.​

If Your Price is Too High

• There is an increased risk that the budget of potential buyers is too low. Budgets can be set off by even the smallest increases in price. 
  
• If you do find a buyer willing to pay over the going market rate for your home, they might run into trouble getting their offer financed because banks may decline the loan given that your home’s appraisal value is lower than its contract price.
  
• If by chance you do find a buyer, it is less likely that you will get an offer without conditions. A buyer may offer but pending an inspection, with the intent of finding reasons why your home is overpriced. Or a buyer may have further financing issues with an increased budget, putting the deal at further risk. 
  
• Your listing also gets the most attention the first four weeks of being on the market. Past the four week threshold, an agent will typically ask to decrease the asking price.
  

If You Price Fairly

• In an active market, pricing your home correctly will stand out amongst other listings. Buyers will notice the fair price and be more inclined to offer. The increases the chance of multiple offers, which could potentially increase the sale price of your home! 
  
• In the current market we are in, buyers want to go with the safe bet. If you price your home correctly, buyers will feel more comfortable with the decision to buy your home.