Apostal Group

Avoiding the Dangers of Overpricing Niko Apostal 03/18/13

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When pricing your home to sell, it’s hard to know exactly where to put the price so that it is competitive in the current market but also brings the best price you can get. You want to avoid the trap of overpricing, which leaves your home on the market much longer than comparable, lower-priced homes and puts you at a disadvantage when it comes to negotiating. Find this perfect balance is where a great realtor can make a huge difference, ensuring that your home sells quickly for the best possible price. Here are a few things we like to consider when setting an asking price:

  • Look at comparable homes that have sold recently, and also comparable sales that are currently pending — This is where a realtor can really be indispensable. If we, as realtors, can get some information from insiders about the pending comparable homes, that’s very useful – sometimes even more useful than the current sold homes, because it’s a more accurate reflection of what the market is doing right now.
  • Analyze the comparable sold homes to see how long they stayed on the market before sale — This can also be an indication of whether the pricing was accurate or not. Homes that sold very slowly were probably overpriced initially and probably ended up selling way below asking – even below their reduced price, in a lot of cases. Pay attention to the original list price, the list price at the time the home went off the market, the sold price and the total number of days on the market to get the full picture.
  • Act like a potential buyer, and do some research about comparable homes in your neighborhood — It’s helpful to know what potential buyers in your neighborhood are most likely willing to spend. Were there several home sales in the past two months that fell within a certain price range? If your home also falls in that price range, it increases the odds that you will show up in potential buyers’ searches. The goal is to make sure your home falls into the broadest possible bucket of online searchers, and encourages every buyer who sees it to add it to their “to-see” list.
  • Act like a potential buyer and actually visit some comparable properties — Sometimes it’s hard to tell from online listings how your home would actually stack up against similar homes in your neighborhood. The best way to know for sure is to actually tour some of the comparable homes that are for sale. Once you see what a buyer would be seeing on a home tour day, you can set a realistic and accurate price for your own home.

Here at The Apostal Group, we want to make sure that we are getting the best price for your home and selling within an acceptable timeframe for your life. We are happy to help guide you through the process of selling your home and setting a listing price to ensure the best possible outcome. If you are considering selling, contact us! We’d love to chat about what you can expect in the current market and how to get the best possible price for your home!

*Photo courtesy of Flickr user librarianc