People sell for a variety of reasons , but one thing all sellers have in common is they want to sell their home fast and for top dollar . Pricing a home incorrectly is one of the biggest road blocks to achieving this goal . Here are three strategies to remember when working with your Realtor ® to arrive at the perfect list price .
1 . REMEMBER THAT YOUR HOME IS NOW A PRODUCT FOR SALE
Every home tells a story of the people who live there . Whether it ’ s that one wall marked with the heights of your growing children , or the deck you built with your dad , it possesses a wealth of memories . For this reason , many sellers approach pricing their home through the eyes of its sentimental value and not its market value . The solution to this problem is embracing one key idea : your home is a product for sale and the market will dictate its price . This may feel like an unnatural way to think of your home , but this change in thinking is an essential first step . It ’ s like the difference between decorating and staging : you decorate a home you live in , but you stage a home you ’ re selling . This subtle but critical shift in the way you approach selling your home will result in a wellpriced property that is poised to sell fast and for top dollar .
2 . OBSERVE CURRENT MARKET CONDITIONS
If you ’ ve had selling on your mind for a while , it ’ s possible you ’ ve already had a Realtor ® complete a home evaluation on your property to get a sense of its value . In a high-performing market like Simcoe County , market conditions can change weekly , so it ’ s critical to repeat this step when you ’ re actually ready to list . During a home evaluation , your Realtor ® will arrive armed with important research that shows what similar homes are worth in your area and what they ’ ve sold for . This data , combined with other key factors like the condition of your home and its location , is what will turn your projected home value into a real-time list price . Throughout Simcoe County , inventory remains low , with some areas like Barrie sitting at just 1 month . That means that it would only take 30 days or less to sell all the homes currently listed for sale if nothing new came on the market . When demand outweighs supply , you have yourself a seller ’ s market , so while historical data is important , up-to-date market conditions will help you arrive at a price that reflects your home ’ s current value .
3 . SET A CONFIDENT LIST PRICE
It ’ s so tempting to choose the Realtor ® who suggests the highest list price , but however enticing it may be , there is a cost to overvaluing your property . When a Realtor ® quotes you a suspiciously higherthan-expected list price , it ’ s called “ buying the listing ,” and often that same Realtor ® will suggest a price reduction within weeks of going to market . Shooting higher than your home ’ s worth seems like a smart strategy to net more in the end , especially if you aren ’ t in a rush to sell . However , time and time again , the opposite turns out to be true : listings that are priced too high end up sitting on the market without viable offers . What ’ s worse is that typically the longer a listing sits on the market , the lower its perceived value becomes . Buyers may be keen , but they ’ re smart . A listing that doesn ’ t move often attaches a stigma to the home which can lower its value . Remember , your goal is to get the highest possible amount from the sale of your home , but choosing a Realtor ® who prices your home competitively will save you thousands of dollars more in the end .
BENEFITS OF PRICING YOUR HOME RIGHT
Pricing your home right will not only maximize its sale price but also positions it well for multiple offers .
If sold within 1 week of listing : average 3.28 % over asking = $ 18,040 more on a $ 550K home
If sold within 2 weeks of listing : average 1.4 % over asking price = $ 7,700 more on a $ 550K home
If sold 5 weeks after listing , average 1.86 % less than asking price = $ 10,230 less on a $ 550K home
Based on Average Home in Barrie Sold-to-Ask Price Ratio : April 13-October 13 , 2020
PRICING TIPS
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Be prepared to discuss price regularly with your Realtor ® . Being open and prepared to face changing market conditions will help you stay on track to get the best price for your home .
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Buyers that are looking for homes are typically looking up to a certain price point . We call those “ glass ceilings .” If you list just above a glass ceiling , you ’ ll miss out on buyers looking just below .
If you ’ ve overpriced your home , reducing the asking price in small intervals can help restore confidence in buyers who may be leery of considering your property .
Do your research in picking a Realtor ® . The more work you ’ ve done ahead of time , the easier it will be to entrust selling your home to the right professional who will get it sold fast and for top dollar .
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