Pricing Your Home Right

Setting the correct asking price is critical, as the initial price will impact both the amount of time a property takes to sell and the final sales price. Here’s why:

The price you set for your house sends a message to potential buyers. Price it too low and you might raise questions about your home’s condition or lead buyers to assume something is wrong with the property. On the other hand, price it too high and you run the risk of deterring buyers. When that happens, you may have to drop the price to try to re-ignite interest in your house when it sits on the market for a while. But be aware that a price drop can be seen as a red flag for some buyers who will wonder why the price was reduced and what that means about the home.

In other words, think of pricing your home as a target. Your goal is to aim directly for the center – not too high, not too low, but right at market value. Pricing your house fairly based on market conditions increases the chance you’ll have more buyers who are interested in purchasing it. That  makes it more likely you’ll see multiple competing offers, too. And when that happens, you’ll likely get an even higher final sale price. Bottom line: when homes are priced right, they tend to sell quickly, saving you money in the long run.

To get a look into the potential downsides of over- or under- pricing  your house and the perks that come with pricing it at market value, see the chart below: