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Determining price is the most critical step in preparing your home for sale.
Obviously, pricing your property on the Canton waterfront at $200,000 won’t provide the best return. When you price too low, you are apt to be deluged with lookers and may get many offers, but you could lose thousands of dollars on your family’s largest investment.
Likewise, pricing a property too high is risky. Homes priced too high miss their target market.
Qualified buyers who might find the home just right for their needs won’t see your home, or make an offer on it, because it is out of their price range. If they are shown an overpriced home during its early marketing stages and do not buy because it isn’t a good value, they are unlikely to revisit your home once the price is lowered. Real estate agents will hesitate to show an overpriced home, unless it will make a competing property look like a better value.
Many home sellers make a mistake by implementing the”let’s try it and see” pricing attitude. But testing the market can be dangerous.
A property receives its best exposure during the first three to five weeks on the market.
If your home is priced right from the outset, you maximize your opportunity of reaching the most qualified buyers. Buyers who have seen most available homes in their price range are waiting for the right house to come on the market. This is why a well priced home often sells quickly once it is put on the market.
Multiple listing association statistics show that the longer a home is on the market, the lower the selling price. The home becomes stale and a price reduction results.
Pricing a home is part art and part science. It’s based on hard evidence by looking at sale prices for comparable properties. But no two homes are identical. Have a licensed Realtor complete Competitive Market Analysis (CMA) on your home. They will be able to make adjustments for location, condition, upgrades, off street parking and other details that may make you home different from your neighbors.
The right price really is the right price range to attract the maximum number of qualified buyers within a time frame that suits the sellers’ needs. Pricing strategy depends on the market conditions at the time your home is put up for sale. It can best be determined by an agent who is active in the market, who constantly views homes and is monitoring the changing market conditions.
Marci Yankelov is a local Realtor and Baltimore native. She works at Century 21 Downtown in Federal Hill.
by Marci Yankelov
Special to The Baltimore Guide