There are 4 common strategies that most sellers use to price their homes. It is unwise to assume that a higher asking price will net you a higher selling price. In fact, this equation works in reverse if you’re not paying attention to what the market is telling you. Bear this research in mind when you set your asking price.
Clearly Overpriced – Every seller wants to get the most amount of money they can for their home, and real estate agents know this. If more than one agent is competing for your listing, an easy way to win the battle is to overinflate the value of your home. I can see this in our own market, which has been VERY good for sellers this year by looking at the fact that over 8,500 homes expired. That’s 27% of all home sellers who intended to sell and couldn’t because of overpricing.
Somewhat Overpriced – About ¾ of the homes on the market are 5-10% overpriced. These homes will sit on the market longer than you want. There is usually one of two factors at play here: either you believe in your heart that your home is really worth this much, despite what the market has indicated, OR you’ve left some room for negotiation. Either way, this strategy will cost you both time on the market and, ultimately, the price that you receive from a buyer.
Priced Correctly at Market Value – Some sellers understand that real estate is part of the capitalistic system of supply and demand. These people carefully price their homes based on a thorough analysis of other homes on the market. These competitively priced homes usually sell within a reasonable time-frame and very close to the asking price.
Priced Below the Fair Market Value – Some sellers are motivated by a quick sale. These homes attract multiple offers and sell fast – usually in a few days – at, or above, the asking price. Be cautious that the agent suggesting this method is doing so with your best interests in mind. If you have any further questions about selling real estate in Salt Lake, please don’t hesitate to contact my team. We would be happy to run a comparative market analysis and pinpoint a hot selling price for your home.
We look forward to hearing from you!