There is an art to pricing your home correctly in order to sell for the highest dollar amount possible. There are three types of prices you can set for your home. One will attract no offers, one will attract exactly one offer, and one will attract many offers.
The first type of pricing is retail pricing. This is where you price your home at a level where homes are listed for sale, regardless of market value. This is an easy way to get no offers at all. Pricing too high works in the reverse of what you think. Buyers will avoid the overpriced listing, which will lead to fewer showings and no offers.
The next type of pricing is market pricing. This is where you price your home in accordance with recently sold homes. Buyers don’t have a sense of urgency with these homes because they aren’t any better or worse of a deal than they could have gotten. This will eventually attract at least one offer, but maybe only one offer.
The last type of pricing is auction pricing. This is where we price purposefully low to attract multiple offers. With this strategy, you get buyers more emotionally involved with the home and make them compete against each other for the home. This helps drive up the price.
An old saying goes that a listing agent must sell a house three times. Once to the buyer, once to the buyer’s agent, and once to the appraiser. Selling the house to the appraiser is the toughest part, but with multiple offers on your home it is easier to defend the price.
If you have any questions for me, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon!