When you decide to sell your Phoenix home, setting your asking price is one of the most important decisions you will ever make. Your asking price is often your home’s first impression and if you want to maximize your home’s selling price, it is crucial that you make an excellent first impression. Because this is not as easy as it sounds, your pricing strategy should not be taken lightly. Pricing too high can be as costly as pricing too low. Taking a look at what homes in your neighborhood have sold for is only part of the process and this on it’s own is not enough to help you make the best decision.
I will help you understand some important facts about pricing strategy to help you not only sell your Phoenix area home, but sell it for the price you want.
An analysis of what homes have recently sold for in your neighborhood is not enough to help you properly price your home. It is important for you to understand how buyers look for a home. Think about how you conducted your house hunting search to find the home you are now thinking of selling. You most likely did not confine your search to a single neighborhood, but perhaps different neighborhoods to find a home that best matched your needs and wishes. The prospective buyer who will be viewing your home will conduct their search in a similar manner. That means they will be comparing your home to brand new construction, older homes, etc. They will also consider other neighborhoods. You can see, when you’re selling your home, you’re not just competing with the home around the corner, but also with all homes in other areas which have the same basic characteristics as yours. Selling your Phoenix home is a beauty contest and price war at the same time. Already feeling overwhelmed? Let me prepare a free home evaluation on your Phoenix home – with no obligation and without speaking to anyone!
There are 4 common strategies most sellers use to price their homes. It is unwise to assume that a higher asking price will net you a higher selling price. In fact, often this works in reverse if you’re not paying attention to what the market is telling you.
1. Clearly Overpriced
Every seller wants to receive the most money they can for their home and real estate agents know this. If more than one realtor is competing for your listing, an easy way for them to win the battle is to overinflate the value of your home and recommend you price it at 10-20% over true market value. This is not in your best interest because in most cases the Phoenix real estate market won’t be fooled. As a result, your home may languish on the market for months, leaving you with two negatives:
• your home is likely to be labeled as a “troubled” house by other agents, leading to a lower than fair market price when an offer is finally made.
• you have been inconvenienced with having to constantly have your home in “showing” condition, all for nothing.
2. Somewhat Overpriced
These homes will sit on the market longer than desired. There is usually one of two factors at play here: either you believe in your heart that your home is really worth this much despite what the market has indicated OR you’ve left some room for negotiating. Either way, this strategy will cost you both in terms of time on the market and ultimate price received.
3. Priced Correctly at Market Value
Some sellers understand that real estate is part of the system of supply and demand and will carefully and realistically price their homes based on a thorough analysis of other homes on the market. These competitively priced homes will sell within a reasonable time-frame and very close to their asking price.
4. Priced Below Fair Market Value
Some sellers are motivated by a quick sale. These homes attract multiple offers and sell fast, usually within a few days, at or above the low asking price. Make sure your agent is acting in your best interest with this strategy!
Be sure to request your FREE bonus report entitled “How To Sell Your Home Fast For Top Dollar” when you order your no-obligation detailed Phoenix home evaluation. Save yourself the $410 appraisal fee and avoid having to speak with anyone!
