The Proper Listing Price Can Maximize Your Gain
My job as your real estate broker is to maximize your gain. Setting the initial listing price of your home is critical in the success of achieving that goal. For full disclosure, please understand this advice is based on today’s market – changing market conditions will most definitely require a different strategy, but this article will give you some high-level insight to correctly pricing your home for today’s market.
When your home first goes on the market, you have the greatest window of opportunity to find your target buyer. Your listing price has to be within a certain window of attraction. If you price your home too low, your initial audience won’t be able to afford to pay as high of a price as your home could likely escalate to. Additionally, setting the price too low misses your target audience who can afford the top market value of your home – because your target audience is looking at homes priced closer to their maximum buying power.
"Setting your price too high can drive your buyer to the competition."
On the other hand, if you set your price too high your audience will find better value in the competition, or, your target audience will never see your home because it’s priced out of their range. Setting the correct listing price to maximize your gain is a fine balance of science, art, and experience, which is where a real estate professional is your best bet.
When pricing your home, I will show you comparable properties and the prices they sold for. The final sold price is the best measure of market value – the listing price of homes still on the market do not represent market value – which may explain why they are still on the market.
I will also show you the best competition on the market and how to price your listing to drive buyers to your house. Conversely, if your home is overpriced it will drive buyers to the competition. This is where my expertise and experience will help maximize your gain. When I work with a seller, I am investing my own time and money to market your home. If the home doesn’t sell I have lost my investment, so you can rest assured I believe in my listing price!
"The market isn’t rejecting your home – it’s rejecting your price."
I don’t want your home to languish on the market; it creates stress and keeps you from reaching your next destination. Worst-case scenario of improper pricing is missing out on the home of your dreams because your house is sitting on the market. Languishing on the market is tying up capital you could be using elsewhere while you continue to pay the mortgage, taxes and maintenance.
If your listing isn't getting the attention that it deserves, it's not that the market is rejecting your home – the market is rejecting your price. There are a number of strategies for properly setting the listing price of your home, and ultimately maximizing your gain from the sale of your home. When you call me we can discuss the options that will work best in your individual situation to find the listing price that creates the best window of attraction to maximize your gain and achieve your goals.