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The 3 Pricing Strategies for Selling Your Home

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How do you price your home when selling? We use three different strategies, and local market conditions determine when to use each one. Learn more.

When you’re selling your home, you might think that choosing an asking price is based on your home’s value alone. This is a great starting point and should be the main factor when deciding on a price. But what you might not realize is that there are different pricing strategies for selling your home that could help you make more profit, sell faster, or both.

Here’s a quick overview of the three different pricing strategies we use for selling your home so you can make an informed decision.

  1. Price Below Market Value
  2. Pricing your home below market value sounds counterintuitive. Wouldn’t that mean making less profit on your home?

    Not necessarily.

    When you price your home below market value, you do so in an effort to create a bidding war. Homes priced lower than what people expect can increase the urgency to make an offer. More offers on your home means buyers need to make their proposals attractive, which often means offering more than what you’re asking.

    As a result, you may end up with several offers to choose from and can select the one from the highest bidder.

    This strategy works best in a seller’s market, where there is less inventory than there are buyers. This imbalance gives sellers the upper hand, which is why sellers often set a below-market price to create more interest in their property.

  3. Price at Market Value
  4. Arguably the most common home pricing strategy is to get an appraisal or comparative market analysis (cma) to see what your home is worth and list it at or near that price.

    An appraisal gives you a baseline idea of how your home is currently valued, given the local market. It takes into account comparable home sales near you, the unique features of your home, square footage, age of the home, and many other things.

    However, when you ask for the market value of your home, there’s very little room for negotiation. If buyers make a lower offer, you won’t be getting what your home is really worth.

    Making minor improvements to your home can help you justify your asking price and get a fair market offer. For example, make obvious repairs, apply fresh paint where needed, and improve your curb appeal.

  5. Price Above Market Value
  6. Pricing your home above market value is a great way to “test the market” and see what happens. You might be able to get more from your home than it’s really worth if you can connect with the right buyer.

    This strategy could work in a seller’s market, where there are fewer houses than there are buyers. A seller’s market drives up home prices because of limited supply, encouraging buyers to increase their budget or risk missing out.

    However, this is arguably the riskiest strategy. The higher the home price, the fewer buyers there are to appeal to. Your home might linger on the market longer as a result.

Which home pricing strategy is right for you? Contact us today for a consultation and let’s discuss!

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