Here is a great truth: the single most important thing you can do to ensure your house sells in a reasonable time for the most money is to price it properly when you list it. Notice I said to price it properly; I didn't say to bargain-price it or even under-price it.
A proper price is aligned with the trends in the local market and falls within the range of value established for the neighborhood.
Market trends: is the local market appreciating? Or depreciating? How much? If values are increasing, say 3% a year, and the most recent sale of a home like yours in the neighborhood was six months ago for $250,000, it is reasonable to assume that your home may be worth about $253,750 - 1.5% more (half a year's appreciation). Conversely, if home values in the area are falling . . . well, let's not go there.
The range of value for the neighborhood: Every neighborhood has a range of value. We consider all of the homes that have recently sold, from the smallest and least expensive to the most grand and pricey. This establishes the range and it does shift over time, usually upwards. After adjusting for market trends, your home should fall within that range of value. Further, it should price within the range based on what similar homes in the neighborhood have sold for. If you have 3 bedrooms, 2 baths and 1600 square feet, you want your price to line up with similar 3 bedroom homes. You don't want to put a 4 bedroom 2200 square foot price on your 3 bedroom home!
I can't state this strongly enough: Pricing above the range of value for the neighborhood is deadly to a home selling process. Buyers who would be perfect for the neighborhood will simply see your home as overpriced or beyond their reach. Buyers looking at more expensive neighborhoods may find your home, but when they compare it to the rest of the neighborhood, they will move on.
At any given point in time there are a certain number of buyers in the market looking for homes. Some would be perfect for your home. When you enter the market properly priced, that pool of buyers will rush to see your home. That's why the first two weeks of any listing are probably the most important - you're becoming available to a large group of buyers who have been waiting for a home just like yours. If you overprice, you push that large pool of buyers away and you lose the most productive marketing period for your listing.
This has been a 30,000 foot view of pricing. I've talked in general about some of the factors influencing price for a good reason: it's much more complex than that! At The Vincent Group at GreatNest, we are pricing experts! When we sit down to talk with you about selling your home, we will bring all the data, examine all of the trends, and help you establish a price that will produce the highest return for you without scaring away potential buyers.
GreatNest and The Vincent Group is a full service real estate company charging a low set fee instead of a percentage commission. We serve buyers and sellers in Greensboro, High Point, Winston-Salem , Summerfield, Oak Ridge, Jamestown and surrounding areas. You can reach us at (336) 790-5210 or by emailing Steve Vincent. Visit our website: greatnest.com.