Monday, March 20, 2017 / by Melanie Lanteigne
Did you know not pricing your home right the first time can have a detrimental effect on the sale of your home?
In the above graph you can clearly see the homes that sold the quickest sold for, or close to, asking price. Whereas the homes that sold for significantly less than asking (even after multiple price reductions) sat on the market for a longer period of time.
Without a doubt, pricing your home right is one of the most important tools in real estate. Here's why:
- The first 3-4 weeks your home is on the market are the most crucial to a successful sale. Active buyers have already seen everything currently on the market and are just waiting for the perfect house to hit their inbox. If you are priced right, right from the beginning you are going to maximize the number of buyers seeing your home.
- If your home is overpriced buyers will simply move on without even a second glance.
- If you start doing price reductions over an extended period of time it will raise flags to potential buyers. They will wonder what is wrong with the house? Because obviously there must be something wrong if it isn't selling, right?
- Most buyers have a price set in their head and it's usually a pretty even number, for example $300,000 or $320,000 and if you list your house for $300,900 or $320,9999 you're missing A L O T of potential buyers who's search is set a maximum just below your asking. Make sure to choose a number that makes sense.
- It is also important to not UNDER PRICE your home, you will be swamped with showings and offers only to potentially lose thousands of dollars on one of your biggest investments.
The next questions you're probably asking is, "How do we know the right price to list our house at??"
- Always defer to the experts. An accurate home evaluation includes up-to-date information of the area and expert judgement.
- Compare your home to recent (3-6 months) solds & what is currently active in your community
- What makes your home stand out compared to them? Everything either adds or takes value away from your home. Garage or no garage? Finished or unfinished basement? Recent Upgrades or Original? Everything will effect the price of your home, especially big ticket items such as kitchen, bathrooms, new roofing, windows, etc. That is why it is important to have a neutral 3rd party do your evaluation.
Now.. What can you do get the MOST out of your home?
- During our home evaluations we will always give you the best suggestions on what you can do around your home to add value. Generally if your home is in pretty good shape we suggest de-cluttering, paint touch ups and a really thorough clean.
- Unless your property is in severe condition we do not suggest doing large overhauls; due to the fact you usually don't get a large enough return to make it worth your time.
- If you do choose to do any renovations or touch ups make sure to advise a professional decorator or a paint specialist to ensure you are choosing a neutral palette that will attract all buyers. You don't want to push away potential buyers just because you choose a dark, unattractive paint colour for the living room.