Home pricing is more of a science than an art.
Here’s why crunching the numbers is always the better route to an accurate home price — as well as what can happen when home sellers overlook those all important data points.
The Pitfalls of Overpricing
Homeowners often think that it’s OK to overprice at first, because — who knows? — maybe you’ll just get what you’re asking for. Although you can certainly lower an inflated price later, you’ll sacrifice a lot in the process.
The most obvious damage: A house that remains on the market for months can prevent you from moving into your dream home.
And worse: Continually lowering the price could turn off potential buyers who might start wondering just what is wrong with your home.
The Pricing Traps
It’s easy for homeowners to stumble into two common traps:
That’s not to say that renovations aren’t worth it. You want to enjoy your home while you’re in it, right? Smart renovations make your home more comfortable and functional but should typically reflect the neighborhood.
Another culprit for many a mispriced home is online tools, like Zillow’s “Zestimate,” that prescribe an estimated market value based on local data.
The estimate is often wildly inaccurate.
The Right Stats for the Right Price
The best pricing strategy?
You must review recent sales with real estate professionals to determine the appropriate listing price. They’re not just looking at your neighbors; they’re seeking out near-identical homes with similar floor plans, square footage, and amenities that sold in the last few months.
After crunching the data, they’ll work with you to determine a fair price that’ll entice buyers. The number might be less than you hope and expect, but listing your home correctly — not idealistically — is a sure way to avoid the aches and pains of a long, drawn-out listing that just won’t sell.
Knowing When the Price is Too High
Once your home is on the market, you’ll start accumulating another set of data that will serve as the ultimate price test: how buyers react.
When it comes to finding a buyer, pricing your home according to data — and the right data, at that — is crucial to making the sale.
Please contact Joan Bang at (213) 675-3289 or at Joan.Bang@Dilbeck.com for an initial consultation to review your home goals.