Real Estate Myths: Pricing Your Home
Myth: You should always price your home high and gradually lower it if it doesn't sell.
Truth:
Somehow we think that selling a home is like selling a car; price it high so you have some "negotiation room". The truth is pricing too high can be as bad as pricing too low.
You may think by listing high you can always accept a lower offer, but if you do, you'll miss the buyers looking in the price range where your home should be. When potential buyers search the internet they search by price range; $350,000 to $375,000 for example. If your home should be in that price range, say $372,500 but you price it at $385,000 to give you some negotiation room, you will miss the very buyers you desire.
On the other hand, buyers looking for homes in the $375,000 $400,000 price range will see your home priced at $385,000 and compare it to homes that should be priced at $385,000. They will likely think, "This home is not worth that price when compared to another similiarly priced home." You lose again!
Offers may not even come in, because interested buyers are scared off by the price and won't bother to look or buyers in the price range will find something at the same price that is of more value. By the time the listing price is corrected, you will have lost a large group of potential buyers.
Ask your real estate professional to do a Comparative Market Analysis (CMA) to help you properly price your home in the current market.