Although, many factors, contribute to the ultimate, success (or, less than, stellar results), in terms of, selling a house, perhaps, the most significant factor, is, generally, how it is priced! When, a homeowner, decides it’s time, to sell his home, he should, have an in – depth, discussion, with several potential agents, before hiring the one, which might, make the most difference, for the better, for their particular needs, and priorities! Since, for most people, the value of one’s house, represents, their single – biggest, financial asset, doesn’t that make sense? How one prices a house, should, depend, on a variety of factors, such as the economy, competition, etc, but, it is important to realize, there are, basically, three key options and alternative, approaches/ methods/ options, at determining the initial listing price. With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, these, including, when they are indicated, and the some of the reasons.
1. Pricing at high – end: When, might it make sense, to price, a house, at the higher – end, of the real estate market, at that specific, period, of time? This type of pricing, makes the most sense, when the homeowner, is not, in a rush, to sell, and/ or, there are specific, differences, about this house, and property, which might attract, potential buyers, to offer more, for it, than, other, competing properties, on the market, at the time. Depending, upon, the specific area, and region, and the supply – and – demand, impacts, etc, this important decision, must be seriously, discussed, in advance. For example, if supply is limited, and demand exceeds it, then, this might make more sense, than, under, other circumstances, and/ or, conditions! Remember, however, in most cases, the best offer, received, comes, within a short – time, after it’s listed, on market, and, that, selling, and listing price, are, often, far – different, entities!
2. Middle of the range: Often, the conventional wisdom, is to price a house, at the middle of the range, indicated, by a Competitive Market Analysis, or CMA. However, the marketing implications, niche of the particular property, number of qualified buyers, and how, it compares, to the competition, must be seriously considered!
3. Low – end, of the range (or below): When, might the right approach be, to price a property, at, or below, the lower range? I have, on several occasions, successfully used this approach, to create a bidding – war, and create considerable buzz, in terms of attracting the greatest number of qualified, potential buyers. This approach, generally, makes the most sense, for individuals, who want, the transaction period, to be, as short, as possible!
Smart homeowners have thorough discussions, about listing price, options, possibilities, and choices, and the advantages, and disadvantages, of – each! Be certain to hire the best agent, for you, your personal needs, and priorities!