In today’s real estate market buyers have a lot of choices. When selling your home, attractive pricing and perception are arguably the two core essentials, and making a distinction between your home and the dozens of others for sale is the key. Where pricing is concerned, establishing the asking price is part skill and part “gut check”, and there are several things you should consider before establishing the asking price:
Study past sales. This is the starting point for any thoughtful and successful pricing strategy; think of it as the "skill" part. Take the time to study past sale statistics for homes in your area and areas similar to yours. None will be identical, of course, but having a clear understanding of true market value is the first step in establishing your list price.
Do not confuse active listings with past sales. Active listings have not sold. They are just your competition. It is important to be aware of your competition's pricing, but this is often just an indication of what your home won't sell for.
Do not overprice because you have "time." Don’t price high to see if you can get more. If the market is appreciating an overpricing strategy may work, but if prices decline you will find yourself chasing the market and costing yourself money. Or, if the market is stable your home will just sit because it is priced too high. Buyers pay in today's dollars, and time is rarely on your side. Further, the longer a home sits on the market for sale it raises questions as to whether there are problems with the home. You should price right to sell faster.
Leave some room for negotiation, but don't overreach. No seller wants to feel he left money on the table, and no buyer wants to overpay. Your price should give both parties room to maneuver, but if it is too high, you risk being perceived as unrealistic, and buyers will pass over your home.
Think like a buyer. What are the things that you value in a home? Is it a large yard, an updated kitchen, colorful landscaping? These are likely the same things that your buyer values as well. Talk to your agent about current buyer trends and update your house accordingly or price your house knowing that some things need to be replaced. Remember …yesterday's avocado green shag carpeting is today's granite countertop. Your price should reflect how your home compares to the others offered for sale; And, buyers will find objections to any home, as none is perfect, but it is curious how quickly objections disappear when the sales price is compelling.
React swiftly and decisively. If your home is on the market and is not being shown, or if you receive feedback that you are priced too aggressively, do not hesitate to adjust your price. Bad news doesn't get better with time and an aging home listing raises questions about its quality.
First impressions are everything when selling your home. Studies have shown that the first two weeks a home is on the market are the most crucial to your success. During these initial days, your home will be exposed to all active buyers. If your price is perceived as too high, you will quickly lose this initial audience and find yourself relying only on the trickle of new buyers entering the market each day. You have one chance to grab attention. Make sure your pricing helps you stand out -- in a positive way.
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To learn more about the Houston real estate market, selling your home, staging your home, or Houston homes for sale, please visit our website at https://www.2Mrealty.com.
Mark W. Martin is a Texas Real Estate Broker and Houston Realtor. He can be reached by email at martin@2mrealty.com or by calling (877) 839-5263.
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