It’s not easy to know how to price your Parker, CO home to sell. While it’s usually the case that sellers want to get as much as they can for their homes, it’s not always priority #1. That said, selecting the best initial listing price is the single most crucial factor in selling your home.
Here are some tips on why pricing your home to sell is essential.
The Danger of Pricing Above the Market
“We can always come down” is the mantra of reality real estate TV shows. In “reality,” pricing your home high, hoping it sells at that price, isn’t the best approach and could cost you thousands in net proceeds.
Buyers want to get value for their money, whether that value is real or perceived. The buyer that is panicked about buying high is less likely to close because the value “hook” isn’t there. Furthermore, this type of buyer is generally the least qualified in the buyer pool looking for homes at any given time.
So what’s the best strategy?
Choosing an Initial Listing Price that Speaks “Value”
The way to price your Parker, CO home to sell for the highest price is not by pricing it above the market but by pricing your home slightly below the market for your neighborhood. In the current maret you will be able to price your home above market value.
To sell a home, buyers have to view it either in person or virtually. But there has to be a hook to get them through your front door.
If buyers don’t see your home, they won’t buy it. If you price your home higher than the market, buyers won’t come to see it. They will think it’s overpriced and that you’re not a reasonable seller.
However, if the initial listing price is slightly below the market for the area, everyone wants to see it. Everyone wants what they feel is a good deal and value for their money. Pricing your home this way will prompt buyers to come to see your home. That’s when the competition begins.
When Buyers Compete, Sellers Win
When buyers compete, the price goes up. That’s good for the seller.
To break it down:
- Price the home above market for the area = a few showings, weak offers for less than list price, or no showings at all. The longer it sits, the worse for the seller. Buyers will think there is something wrong with it because it’s still on the market. Sellers will need to reduce the price substantially to garner any interest.
- Price the home slightly below the market for the area = the Blue Light Special at KMart. You’ll get the highest qualified buyers and the best offers the market has to offer. Competition results in a higher sales price, something most sellers want.
I hope this helps you see that the best approach is to do the opposite of what reality TV shows suggest. Price it right and walk away happy. Are you considering selling your Parker, CO home this spring? I’d love to help you. Please don’t hesitate to contact me if I can help you.
Thanks for visiting!