Home Pricing Strategies: Explained

Homestead & Co. Podcast with Zach Sikes

Understanding pricing strategies can make a big difference in selling your home. Oftentimes, I encounter people who falsely believe that the best route is to overprice a home, and then bring it down if it isn’t working. But, imagine for a second in this circumstance that you’re the buyer. When you put on your “buyer hat,” it isn’t hard to see why someone looking for a home might be deterred from an overpriced listing. Imagine one home that has just gone on the market, where the sellers have barely had time to put the sign in their yard. Then, imagine a property that has been on the market for 180, or even 210 days. “The longer we’re on the market, the lower the offers will be.” If these properties were exactly the same, how would your offers be different? The truth is that most people will offer less for a home that has spent more time on the market. The longer we’re on the market, the lower the offers will be. So selling sooner rather than later is key. If you are a buyer, however, you can use this fact to get a great deal. By finding a home that’s spent a lot of time on the market, and has no other issues other than having been initially priced far too high, you could have a great opportunity to get into a house that may now actually be cheaper and see less competition. As a seller, though, you want to avoid this situation. When you price your home too high, it’s inevitable that you will likely sell it for even lower than what you could have gotten if you had just priced it right the first time. If you have any other questions or want more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.