Most realtors have one pricing strategy when it comes to selling a home. Our team actually has three pricing strategies to share with you in this post, each designed to help you sell your home for top dollar. Depending on the market conditions, any of these strategies could be effective. We typically outline them and choose the best option in our sit-down listing appointments with clients.
There’s a lot of psychology involved in pricing, and it absolutely has an effect on your closing price. Let’s check out three great strategies.
Listing Above Market Value - The "Needle in the Haystack"
Sometimes people relate value to price, meaning if you list your home above market value, they might just perceive more value. Over-pricing can be risky, but it could work in a sellers market. The main risk here is that your house becomes stagnant on the market, forcing you to reduce price and raise questions as to why no one has made an offer.
Over-pricing could also be an effective strategy for tentative sellers, the ones with the mindset of “if this sells, great, if not, no worries”.
The "Market Price"
You can’t go wrong with listing your house at market value. It’s fair and effective. We always look at comparable homes (comps) in the area and list accordingly. Also, when we sit down with our clients, we often advise them on easy ways that they can raise this fair market value. There are often simple home improvements that offer a great are ROI with little effort!
Listing Below Market Value - The "Bidding-War Strategy"
We're in the best market to sell in over 17 years. Inventory levels are historically low, and there are many more buyers than there are sellers. With that, it makes sense to list a little above market value, right?
In many cases, we’ve found the opposite to actually be true. When people see a great deal, they get excited. This creates competition and aggressive bidding, which can create a bidding war for your home - a best case scenario for any home seller! Check out our video below for a case study where this strategy produced incredible results.
Pair a low listing price with one of our massive open houses and our marketing/sales strategy, and you could find yourself in a very pleasant situation - with multiple buyers, offers, and extra cash.
Be sure to check out our video and get in touch below - we’d love to schedule a listing appointment and go over strategy!