Pricing your home correctly is one of the most important decisions you will make when selling a home. The price that you list your home for sale in Atlanta will determine the type of home buyers you attract, how long your home is on the market, how buyers feel about your home and a myriad of other emotional and financial repercussions.
Studies and numerous examples show that correctly priced homes attract more potential home buyers, have more showings, sell more quickly and sell at more lucrative prices. Some home owners take a calculated risk and under-price their homes in the hopes that the incredible pricing will encourage a bidding competition. While that's not always a recommended strategy in this buyer's market, a slightly under-priced home will attract attention and better consideration than an overpriced home.
How you price your home will determine what type of home buyers will be attracted to your listing. Most house hunters have a price range they are trying to stay within. If you overprice your home, you immediately exclude home buyers who might otherwise be good candidates for your home.
There are a few psychological pitfalls to pricing your home well above market value, as well. First, home buyers are pretty savvy and are likely to know the general market value of your home. If you overprice your home, you set house hunters up to immediately distrust you and cross your home off their lists even before they have stepped foot in your home. Secondly, your over-priced home will become the example that other real estate agents and home buyers will use as a comparison to more reasonably priced homes. Your competitors' homes who have priced correctly or slightly under market value will always win in this comparison.
Some housing data suggest that homes priced too highly end up selling for less than they would have if the home had been priced correctly to begin with.
Overpricing a home can also be exhausting for the home owner. Inevitably, the home owner will have to drop the asking price as the property languishes on the market. This "chasing the market" can be a downward spiral that leads to multiple price drops and dissatisfied sellers. The longer a home sits on the market, the more tiresome it becomes for the seller: vacating frequently for open houses, keeping the home spotless in case a showing turns up, the constant feeling of being on show can be wearing.
Since pricing can determine the length of time your house is on the market and your ultimate profit, it's best to follow the pricing advice of your Tina Fountain real estate agent. Your agent has the experience, the comparable property data and area knowledge to help you set an appropriate price for your home and help you move on to your next property.
New Listings That Have Been Priced Correctly