Thursday, November 21, 2019 / by Amber Tice
Just because it’s a seller’s market in the Spokane area doesn’t mean you will get what you want out of your home easily. Getting the maximum amount for your home takes research, strategy, and good timing. That’s why it is so important to have a knowledgeable realtor on your side.
Here is how you can price your home correctly in order to sell for the most:
First things first….
Your realtor should be showing up to your home with a comparable market analysis that shows you in detail what has sold in your area, and for how much. Inside this report should be market statistics for the city of Spokane, which homes were overpriced, underpriced, and how that hurt each seller, real estate terms and definitions, our marketing strategy, etc. This report is the foundation of your new relationship with your realtor. Without a concrete plan, and a way to get there it is likely you won’t find the finish line very easily.
After your realtor has presented all of this information to you there will be a price range that he/she recommends you list your house for. This decision is yours and yours alone to make. Your realtor is there to help guide you through the process, and give you the tools in order for YOU to make the best decision for you and your family. Giving you false hope by presenting some outrageous number in hopes of gaining your listing is not a strategy in my tool bag. It will be in your best interest to find a realtor who is honest with you regarding what your home is actually worth and what it will sell for.
Pricing your home too low…
Pricing your home too low will result in buyers thinking that something is wrong with your home. It’s as simple as that. They will wonder why you are trying to get rid of it so fast and they may not even entertain coming to take a look. I’ve had several buyers say “I love this one, it seems too good to be true though.” You may also run the risk of selling your home for less than you would have gotten if you would have priced it correctly in the first place.
Pricing your home too high…
When you price your home too high you are running the risk of pricing buyers out of the market who could have made an offer on your home if it was priced correctly in the first place. Buyers will not overpay for your home unless they know it is worth it. It is also smart to know that lenders will not lend on a home that does not appraise for at least the list price unless a buyer comes along that has a significant down payment. According to Forbes.com 78% of Americans live paycheck to paycheck. What does this mean? It means most Americans are unable to save what they need in order to put a large down payment on a home. You may also spend more money listing your home high, sitting on it for longer than you expected, and then pulling it off the market then you would have by listing it correctly in the first place.
The magic number…
Realtors don’t have crystal balls, but we sure do have a lot of tools at our disposal in order to help us pinpoint the correct price point. You want to price your home right at market value, or slightly below in order to drive competition. Remember, buyers agents should be doing the same research as your listing agent and they will know if your home is priced too high for the market. Buyers are also educated and doing some research of their own. A lot of people have the misconception that if they price their home for more than they should be receiving offers at that price point. This is misguided thinking. Competition is driven by those who price their homes correctly for the market. This gives buyers the sense that you aren’t fooling around, and that you aren’t trying to pull one over on them. They will be more willing to make an offer. You are also more likely to get multiple offers. Homes that are priced at market value tend to sell for more money, and tend to sell quicker than homes that are priced to high.
Pricing your home correctly is just the beginning of the process of making sure your home sells quickly and for the most money. Check out my blog to learn more about staging techniques, how to survive showings, and what you need to remove from your home before it goes live.
Happy house selling!