3 Pricing Strategies When Selling Your Home
There are 3 different ways that you can price your home. What are those three different ways and how can they affect you when you go to sell your home? Jasmin is going to talk to you today a little bit about some pricing strategies on how you can price your home.
One way to price your home is by using a very traditional method which is taking your perceived market value and going 10, 15 or $25,000 over that. Now, that has been used because it is thought to be able to give you some room for negotiation, however in our market, what we have seen sometimes with that is maybe houses sitting on the market a little bit longer because they are overpriced.
Another method that is used is listing your home at its perceived market value. We call it perceived market value because first and foremost a home is only, is worth as much as someone's willing to pay for it. We can do our best as far as data research, looking at why the sellers in that neighborhood sold. What houses have upgrades? Do they have new roofs? We look at every little thing to try to determine the price of your home but at the end of the day again, it's only worth as much as someone's willing to pay for it which is why we call it perceived market value because it's only perceived at this point.Listing it here is a great way to start because especially if you're in situation where you need to sell your house quickly or you're buying another house and you're selling your house and we can get into that. That's a whole other topic but we do this because most buyers are looking online.
There are 95% of buyers looking online so if they see house A and house B in the same neighborhood but one is listed for $10,000 more, let's say house A. They're probably gonna go to house B because it's $10,000 less and in their mind, it looks like the same exact house. So that can be helpful with fair market value by listing it to A, bring in more potential buyers because that's a huge part is getting as many people through the door and to be able to see your home as possible.
The last strategy for pricing your home is actually underperceived market value. Now, people have done this and we have seen it done to drive in a lot more traffic to your home. What it can do is it can help create a flurry and bring in more buyers however at the end of the day, is it going to end up netting you more, you can never determine that and you can never predict that.
Sometimes it might backfire however we have seen many people benefit from that in order to bring in more traffic and then in our market, we do see a lot of multiple offers so we'll get multiple offers or something like that. So, there are a couple of different strategies for you when you do go to list your home. And like I said, of course, you can work with your realtor depending on your timeline, depending on your situation and depending on what you want to net out of your home. These are all different ways that you can look at the market and determine a good pricing strategy for your home.