Can You Raise Your Home’s List Price After It Hits the Market?

Ed Pluchar with Real People Realty Podcast

If you want to adjust your sales price upward after your home hits the market, you can do one of two things.

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As a seller, can you adjust your sales price up after your home hits the market?
I was very recently working with the person who asked me this question. We were in the process of setting up a listing agreement, and we had a listing price in mind. The seller thought the home was still worth more, though. This is a common occurrence, as most sellers believe their home is worth more than it actually is.
First of all, your listing price should be determined by the sales of comparable homes in the immediate area. What prices did they sell for? What got those homes sold? How long were they on the market? Are you willing to let your home sit on the market or do you need it under contract right away? There are different price ranges for that, and your Realtor can help determine it.
We came up with a price (let’s say it was $299,000) and we were signing the listing agreement when the seller popped the question of wanting his sales price to go up.
The truth is, your home’s sale price is always flexible, and you’re free to renegotiate the listing agreement with your agent. You can also use a price modification form.

Your home’s sales price is always flexible.

My answer to this seller, though, was that if we listed the home at $299,000 and the market told us it was worth $350,000, there would be too many showings, too many offers, and they’d be selling their house in a quasi-auction setting. The reason for this is homebuyers are out shopping all the time, and they recognize what a home is worth. If they see a steal of a deal, they won’t be the only ones seeing it.
When you get a bunch of offers on your home at once because it’s underpriced, you can do one of two things: take it off the market, increase the price, and start over again, or ask for the highest and best offer from one of the buyers. If you’re in the ballpark range of the price you really want for your house, you’re in a position to ask buyers how much they’re willing to pay for it.
I can’t think of a better way to get the price you want for your home than that last scenario. This encourages someone to come up with a maximum number to pay for your house. They don’t know what any of the other offers are, so they’re competing for it.
If you have any questions about adjusting your price up or you’d like a free valuation of your home, don’t hesitate to give me a shout. I’d be happy to assist you.