Setting the Right Listing Price A Key to Maximizing the Sale Price of Your Home
If you’re considering marketing your home and your primary goal is maximizing sale price rather than just a quick sale, Hudson says the key is listing your property at a price where the majority of potential buyers see the value.
He says when a market is on the verge of topping out, many people make the mistake of listing their house based on the eventual sale price of similar houses recently sold.
In such instances, Smith says sellers are really setting a price based on the willingness of just one buyer eager to pay more than everyone else, instead of recognizing that 10 to 15 interested buyers felt the price was too high. Thats’ why it’s important to maximize your home sale price with the help of a realtor.
“When prices stop rising, it’s more important than ever to set the right listing price,” he said. “The market won’t lie to you. Your goal is to get a large cross-section of people through to see your house so you have a high conversion rate, which means for a certain number of people through the property, you have a percentage of people actively pursuing the purchase. To do that, they have to see the value. It’s like paying $50,000 for a pool, then adding $50,000 to your list price and expecting someone to pay full value.”
In such an instance, Hudson says a smarter strategy would be to raise the value $25,000 to attract people looking to buy a home with a pool. “You’re creating a better audience because more people will see the value, and when they do, the market for your home starts to rise upwards.”
Ultimately, the market is driven by demand, and Smith says he’s been seeing the first few price drops in a long while as sellers adjust their list price to attract buyers. However, he says there’s no need for sellers to panic.
“We are seeing more homes selling for less than they’re asking, but not all. We’re still seeing lots of multiple offer scenarios. We still have a strong out-of-town audience. It’s simply more important to price where the majority of your audience recognize the value.”
Given the volatility in the market, Smith says there’s one important factor sellers need to consider: it’s never been more important to use a professional Realtor to maximize your sale value.
“You still have to have a really good agent working for you. Calls have to be made quickly. To an out-of-town buyer, street names like ‘Baltic Avenue’ and ‘Boardwalk Street’ would mean the same thing, because they don’t know anything about the area. Your marketing material has to be key. You have a limited amount of time to foster the best environment you can, and using a realtor is the best way to do that.”
