What’s the Right Way to Price a Home?

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Today we’re going to talk a little about home pricing, which is probably one of the most hotly debated topics in real estate. A lot of times, people see home pricing as trying to find the perfect figure to sell your home at. Really, the people who are successful in real estate don’t think of pricing as a number, but as a strategy.

The first pricing strategy is pricing high to low. This means starting out at a high price, so you can come down to your ideal price with price reductions. Is this a bad strategy? It depends. The best way we have found to use this strategy is to pick a final number you have in mind, but make sure you have a predetermined schedule of price reductions to get you there.

If people see the price falling, they won’t think there is something wrong with the house, trust us. People will actually keep track of properties that are dropping in value, and the more reductions you make, the higher the urgency grows for them. The minute the house moves where the buyer sees value, the market gets very excited and people are going to come in hard and quick to make an offer.

In the present market, pricing low to high is just as valid a strategy. If you believe your home’s market value is in the 150’s, it’s a valid strategy to price it just a tick below, in the high 140’s. When people sense a deal in real estate, they show up in big numbers. If you have a smart agent, he will schedule showings at the same time. This leads to multiple offer situations, which are always very exciting.

You don’t want to be wrong about your market value. The best place to get an accurate valuation is from a highly experienced, competent agent. If you have any questions for us, or would like to know your true market value, give us a call or send us an email. We look forward to hearing from you!