Price Your Home to Sell – Don’t Make a $10,000 Mistake
Did you know that how you price your Tampa Bay or Clearwater home makes the difference in it selling or sitting? Just $10,000 too high and it will sit.
When pricing your home right, resist the urge to employ a “we can come down” strategy. Why? Because when buyers look for a home they choose a price range from the highest their budget will allow to the lowest price that represents the quality of home they want. Whether they are part of the 85% of buyers that start their search on the internet or the other 15% who just call a realtor and let them know, they use a range.
If your home is slightly overpriced, it won’t show up in that price range. So why is that such a big deal? Won’t it eventually show up in that search if you lower the price? The other reason is that the market is active for a specific time period and its most active timeframe is at the 30 day mark. If you price your home too high, those who would buy it won’t see it in the most active time. It usually takes sellers a good 90 days to get to the place where you are ready to lower your price, the market for your home has gone cold… and you have completely missed out.
If that isn’t enough, overpricing your home can run afoul of supply and demand. If your home is in the wrong price range, there is little demand for it. This example has been used before, but it is a good one: if your home is worth $245,000 and you are listing it at $255,000 your home is in the over $250,000 range.
That price range is selling at an average of 4 per month and there is an average of 20 homes it means there is a 5 month supply of listings. If your listing is under 250k, your target price, are selling at an average of 6 a month and there are an average of 18 listings a month, there is a 3 month supply. You want to have your home in the right price range so that it is seen in that best 30 day window. Do that and it will sell, which is what you wanted in the first place. Price it right and you will sell your home.
Want to find out how to get your home priced right the first time?