Pricing Your Home

At Reside we consider the pricing of your home as one of the most critical steps in selling your home. We believe that a home ultimately is worth what someone will pay for it. Everything else is an estimate of value. A comparative market analysis is a real estate broker's informal estimate of a home's market value, based on other listings currently on the market, pending sales, and recent sold homes in a neighborhood.

For a comparable market analysis on your home, simply click here.

The Dangers of Overpricing

Sometimes sellers are tempted to test a higher price at first to see if they'll be lucky enough to find a perhaps uneducated buyer willing to pay. Unfortunately, experience shows this "Why not?" pricing strategy rarely pays off. Instead, asking the right price from the start avoids the many dangers of overpricing.

The right sales price is based on several factors: size of the house and its special features and amenities, recent home sales, demand for homes in your area and prices of similar homes currently on the market.

6 Proven Reasons Why It's Dangerous to Overprice Your Home:

• You will miss out on pent-up demand.
  Most activity on a listing comes within the first 30 days. An initial high price can discourage buyers - causing you to miss out on pent-up demand - or tempt them to wait for the price to come down.
• You might turn off buyers.
  You may experience few or no showings because some prospective buyers who can afford the price won't waste time with an overpriced listing. They know they can get more house for their money elsewhere.
• You could sell the competition.
  Overpricing helps sell other, more competitively priced homes first. Your home may be compared to underscore what a good deal another home is.
• You will frustrate your own timetable.
  You could become frustrated, too, when your house fails to sell in a reasonable amount of time, leaving your plans in limbo. Only a price reduction is likely to help sell your house faster and meet your "move out" timetable.
• You will raise doubts about hidden problems.
  If your overpriced house stays on the market for a long time, it may eventually be seen as "stale inventory" which can suggest structural or mechanical shortcomings, even after you lower your price.
• You will risk lender rejection.
  If you do get a sales contract, the contract may fall through because of a too-low appraisal. The buyer may not be able to borrow enough to proceed with closing.