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Effects of Pricing Pricing your property for an efficient sale is the key starting point. When you decide to sell your property, you want to sell it for as much money as the market will allow. Pricing too high will keep your home from selling. A low price will keep you from receiving full value. There are three main points to consider when pricing your property: |
| Know the Market The Market determines value Price your home competitively based on the price of homes that have recently sold, are currently for sale and those listings that have expired in your neighbourhood |
Condition of Home |
| Results of Overpricing Many sellers believe that if they price their home high initially, they can always lower it later. Often, however, when a home is priced too high, it experiences little activity. Gradually the price comes down to market value, but by that time, it has been FOR SALE TOO LONG and buyers are wary. On occasion, the price is dropped below market value because the seller runs out of time and the property SELLS FOR LESS than it is worth. |
| The Importance of Early Activity As soon as a home comes on the market, there is a flurry of activity surrounding it. This is the crucial time when Sales Representatives and potential buyers sit up and take notice. If the home is overpriced, it doesn't take long for interested parties to lose interest. By the time the price drops, a majority of buyers are lost. |
| Factors Influencing Overpricing 1. Extensive renovations/hidden costs 2. Urgent need of money 3. Desire to purchase in a higher area 4. Original cost of home too high 5. Lack of real market information 6. Building in "bargaining room" 7. Perceived emotional value |
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