The price you list your home at is important and there are many things to consider when setting this price – not just the overall value of the home.
Although it may be tempting to list your price at the maximum value, this may not be the best way to entice potential buyers. On top of what the home is worth, you have to consider the current state of the rea estate market. Is it moving fast or has it slowed down recently? Choosing the right initial list price can make a big difference when it comes to landing a fast sale.
Another important consideration is that you have to allow for wiggle room. Potential buyers are anticipating that they won’t be paying the list price for your property. They intend to negotiate and knock the price down, somewhat. You have to anticipate this. You can do this by listing a little higher to ensure you can ultimately negotiate the price you really want, or you can list lower and hold firm on your price, or only allow for a minimal financial concession on your end.
Dropping The Price
If you are in a hot market, you may end up getting more than your asking price if there is a bidding war, but you should never count on this happening. You need to be open to the idea of lowering your asking price, if you don’t get any bites at your initial list price. Dropping your price by as little as $5000 can get you more interest.
The reason behind this is that potential buyers search within specific parameters, namely within the budget they can afford. If your listing falls outside of that budget, by even a dollar, they won’t see your listing on any real estate listing service or website. Drop your price and it may just open you up to a whole new market of buyers.