Pricing is one of the most important factors in real estate. Getting it right is also one of the most critical and sometimes one of the trickiest things to determine for buyers, sellers, and real estate agents. It can make all the difference in terms of a good or bad real estate deal. And not to mention the time saved or wasted. Pricing “correctly” vs. incorrectly can not only maximize your dollars but same save countless hours, energy and other resources and costs. ⁣

If you’re a buyer, you don’t want to overpay for a property and if you’re a seller, you don’t want to leave any money on the table, right?⁣ So how do you find the right price point? Here are my thoughts and a quick example for you!

One of the biggest mistakes I see sellers make in real estate is pricing their home too high and expecting that, at a minimum, they should at least get some lowball offers from buyers. They all want to wait for that “one perfect buyer” to walk through the door, that’s willing to pay any price because of an emotional attachment to the home. But why doesn’t this always happen? Well, the reason is because buyers look strategically within their price point and write offers on the best properties that are within their budget. So this is why you want to be priced in the correct price bracket. ⁣Otherwise you’re literally cheating yourself out of solid offers.

For example: If your property is worth closer to $950k but you want to aim high and ask for $1.1M to see what you can get, not only is the buyer for your property possibly not even going to SEE your property to begin with (because they’re ONLY looking/searching/approved for up to $1M), but if they do, or for the buyers that have a budget up to $1.1M let’s say, they’re also seeing other, more appealing properties that are ACTUALLY worth that price (potentially due to size/location/upgrades, etc). And they’re making offers on THOSE properties instead- the best of the bunch. ⁣

What ends up happening is that after a long time of holding out for that higher price, you end up with no offers, and chasing down the market only to sometimes end up selling for much less than what the property was truly worth to begin with (wasting both time and carrying costs!). 

So the key to pricing is: you should aspire to be one of the BEST of the bunch in the correct price bracket, not one of the least desirable of the bunch! Price within the right range from the get-go, get your home sold for TOP DOLLAR, and save yourself a huge headache.  

Pricing a home can feel complicated but if you do your research, ask some other realtor friends that you trust that know the area- you’ll surely find a price point that’s competitive and get the home sold quickly for your sellers. Questions on this?

xx Farrah