Pricing Strategies
Strategy No. 1: Listing at Market Value
I will help you synthesize current market data into an asking price that you can justify and stand by, which is important once the negotiations on a home get rolling. Even in a seller’s market, I generally recommend that sellers list their house at market value. By listing at market value, you’ll be in a good position to get a full-price offer relatively quickly.
Strategy No. 2: Listing High
If you’re not on a tight timetable to sell, you could price your home above market value—typically 5% to 10% more—to see if you can nab a great offer. But that approach has its flaws. The last thing you want to do is price your home too high and then have it just sit on the market. When that happens, your house can become stigmatized in the eyes of home buyers, which can make it even more tough to sell. Bottom line: By listing above market value, your home might sell at a premium—but there’s a greater risk that it doesn’t sell, especially if you’re unwilling to adjust the price to match the market.
Strategy No. 3: Listing Low
One way to get your property more exposure is to set the list price below market value—generally 5% to 10% under—in an effort to attract more buyers and potentially spark a bidding war. A bidding war is a good problem to have if you’re a seller. Bottom line: This strategy can backfire if you receive only one offer for asking price or less. That’s less likely to happen in a seller’s market, but it’s always a possibility. There’s also less wiggle room for you to negotiate if you receive a lowball offer.
