Today we’re going to discuss how to price your home properly.
The first step is to consider your home's market value. The market value is not what you paid for the home or how much money you’ve put into improving it. It is not what the home is appraised for or what the county assessor’s office says it is worth.
Your home’s market value is what a buyer is willing to pay for your home.
Now that we have identified what market value is, let’s take a closer look at the power of pricing pyramid and how pricing your home affects its market value.
If you price your home at the top of the pyramid, which is 10% to 15% above its market value, you’ll only be reaching 10% to 30% of the prospective buyers.
However, if you price the home at or below market value, you’ll have a majority of the buyer pool seeing your home.
If you price your home at or slightly below market value, you will capture a majority of the buyer pool.
Another very important factor is the amount of time your home is on the market. The first four to six weeks is the most important time when marketing your home. A lot of sellers will price their home above the market value and chase the market down. This often results in a sale price that is less than what they would have gotten from pricing correctly at the beginning. If your home is priced correctly in your first four to six weeks on the market, you will get showings, second showings, offers, and a sale. If you’re not getting any of that, you definitely know that you are overpriced.
That is how to price your home in a nutshell. If you have any more questions, please feel free to give me a call or send me an email. I would be happy to help.
P.S. I’m now at eXp Realty. Stop by and say hi sometime at my new office at 1478 Stonepoint Drive in Roseville. I would love to see you.