How are home priced and what price would your real estate agent like? Most good REALTORS want the same as you, the best possible price for your home. How to come up with the starting asking price is an art, not a science. For the most part, gone are the days of setting a low price and letting the multiple offers determine the market rate.
Often the asking price is “seller assisted” which means the seller wanted to start at a higher price than their agent recommended. So what is wrong with trying a higher price for a few weeks? Experience shows that if a home is priced too high in the beginning ultimately there will be a price reduction and usually an offer that is lower than the suggested starting price. Buyers want to know how long a home has been on the market and a home that has been sitting for a long time usually means it’s time for a buyer to bring in a low ball offer.
On the other hand if you under price a home you risk just one offer at the asking price as the only offer you have. If you don’t want to sell your home at the price you are asking then don’t use that price.Ideally, you home is priced so buyers feel it is as good or better than other homes priced in the same range. If not, the offer will go to the other home, not yours. When you are ready to sell take a look at other homes in the same price range and ask yourself which home your would rather have.
Warren Carreiro, Broker