Nova House and Home

(571) 353-1531
3114 Westley Rd Falls Church, VA 22042
Menu

Pricing Your Home

Home > Selling

Pricing Your Home

Pricing your home is both an art and a science. Achieving the optimal price is the result of both objective research into comparable properties, understanding the market and neighborhood nuances, and the current buyer desires and their general feelings about the market. After all, it’s the buyers we’re trying to engage, so knowing their perspective is an important aspect of pricing.

The right price should:

  • Attract buyers
  • Allow you to earn the most money possible
  • Help you sell as quickly as possible

The simple fact is, price is the number one factor that most homebuyers use to determine which homes they want to view. And it’s important to remember that, although the price is set by you, the value of the home is determined by the buyer. Try to avoid allowing your enthusiasm to impact your better judgment – overpricing is a common mistake that can cost you in the end.

The Importance of Proper Pricing

  • Faster sale and less inconvenience
  • Exposure to more buyers
  • Increases agent responses
  • Generates more interest
  • Attracts higher offers
  • Means more money to seller
  • Avoids being “stigmatized” by long days on market

What really matters is how your home stacks up against the others currently offered for sale and recently sold in your neighborhood. Buyers will be comparing.

The Role of a Real Estate Agent in Pricing

  • Provide you with a comparative market analysis (CMA), a comparison of the prices of recently sold homes that are similar in terms of location, style, and amenities. A CMA is performed by comparing previously sold homes in the area, and currently active homes to know your competition.
  • There is no “exact price” for real estate
  • We’ll give you our opinion of a price that’s going to attract the most buyers
  • The market determines value…together we determine the price.
  • You determine the price based on the factors you control:
        – Marketing time
        – Condition
        – Exposure method
  • Keep in touch with market trends and keep up to date with market activity of comparable homes.
  • Estimate your net proceeds.

Common Reasons for Overpricing

  • Over-improvement
  • Need
  • Purchasing in higher-priced area
  • Original purchase price too high
  • Lack of factual data
  • Bargaining room
  • Move isn’t necessary
  • Assessed value
  • Emotional attachment
  • Opinion of family, friends, and neighbors

Dangers of Overpricing

  • Most of the activity on your home will occur in the first several days. Pricing a home properly and then creating immediate urgency in the minds of agents and buyers is critical.
  • Buyers who have seen most available homes in their price range are waiting for the “right house” to come on the market. That’s why if a house is priced right, it will sell quickly. The buyers are there waiting for it.
  • Don’t start with a high price and the assumption that you can reduce it later. By the time you decide to lower the price, it may be too late, as interest will have already waned.
  • A major cause for concern is appraisal problems; overpricing can lead to loan rejections, re-negotiations, and lost time.
  • Even if your home is nicer than other homes in the same area, your house won’t be picked for viewing if you set the price too high.
  • Buyers and agents become aware of the long exposure period and often are hesitant to make an offer because they assume something is wrong with the property, or they try to low-ball or ‘nickel and dime’ the sellers.
  • Attracting the wrong buyers.
  • Fewer potentially qualified buyers will respond.
  • You might help sell similar homes that are priced low.
  • You could lose money as a result of making extra mortgage payments while incurring taxes, insurance and unplanned maintenance costs.

An agent has NO control over the market, only the marketing plan. Never select an agent based on price.