Pricing your Home to Sell
Deciding that you want to sell your house might be an easy decision, but setting a good price point to encourage buyer attention can get a little tricky! In order to actually receive offers on your property pricing your house at the right value is critical. With a little bit of research and the help of one of our fabulous agents, selling your house can be an easy and satisfying experience. Here are our top 5 tips for pricing your home to sell—and fast!
Use psychological pricing to reach the “magic number”
Have you ever noticed that most homes on the market are often expressed as “odd prices,” or are priced just under a “century” number? There’s actually a proven psychology behind it referred to as psychological pricing. Psychological pricing is a pricing strategy based on the theory that certain prices motivate people more than others. Think about retail shopping. An item priced at $1.95 is associated with spending $1.00 rather $2.00 despite actually being closer to the $2.00 mark. That slight lower pricing is simply more attractive to the buyer and encourages a sale.
Price it to be found in real estate searches
Most buyers will provide their agent with specifications they are looking to meet including neighborhood, number of bedrooms, and price point. The buyer will often set up an automated buyer search in their local database for properties within a price range. If you have a target figure of around $500,000 in mind but decide to list at $505,000 any buyer who is looking to spend $500,000 or less will miss your listing. Be careful not to set your list price slightly higher than your target so that you do not miss out on a segment of buyers!
Don’t get creative with asking price
Oddly priced homes often call attention to themselves for no good reason. Buyers then start to question why the seller chose that figure and may even look further into it questioning the seller and their intentions. It’s best to stick with numbers that are easy for a buyer to process and that camouflage with other listings at similar price points.
Pricing is an ongoing discussion
Pricing a home isn’t a “set-and-forget” procedure. A lot of factors can come into play when selling or buying a home, and not all of them can be anticipated. If you can be flexible and react quickly to changing market conditions or new information, you’re more likely to get the best price with the least aggravation.
Think like a buyer
Often sellers are too emotionally attached to their homes to objectively set a price. Put yourself in the buyer’s shoes and prepare to be rational. It is helpful to search what else is on the market for the same asking price as the home you are selling. Imagine which one you would buy if you were looking at the options from an outside perspective. This way you can decide if the price you have set seems fair in comparison.
At Forest Hill Yorkville all of our agents are happy to assist you in setting a fair selling price that will earn you top dollar! Contact one of our agents today at (416) 975-5588 for further assistance.