Marketing your home gets it to the people. Pricing gets the people to the home !
Selecting the right price is crucial to maximizing your profit with a quicker sales time. Therefore it’s crucial to understand how pricing attracts people and when most buyers will be most open to viewing your home. Check out the charts below to understand the process better.
To Whom Is It Crucial?
It’s important to understand the selling process involves more than just the buyer. It also involves two other very important components:
The Home Inspector: After an offer has been accepted, but before closing, your home will most likely be inspected. Usually, the home inspector will identify and locate deficiencies in your house that may need a price adjustment, based upon the severity and the nature of the deficiency(ies). Pricing a home will need to take into consideration the price of needed repairs.
The Appraiser: Likewise, once there is a binding Purchase and Sale Agreement, your home will be appraised. If you price the house too high, even with an agreement by the buyer to purchase it for the amount, the appraiser many not concur. Therefore the finance company will not approve a mortgage loan for the whole amount. Alternative sources of financing will need to be obtained.
Accurate pricing is crucial. Research shows that if potential buyers perceive your home is overpriced by as little as 5%, half will lose interest. Price your home at 10% higher than the perceived market value, and 6 times the amount will lose interest.
Conversely though, place your home at a 10% discount under the perceived market value, and interest only increases 25%. A significant 15% price reduction will only increase interest by 50%.
Since research shows most quality buyers come within the first 30 days, it’s imperative to price your home accurately from the start. You’ll lose that initial interest of qualified and motivated buyers if you price your house improperly or employ an ineffective marketing plan.
Miss the initial surge of interested buyers within the first 30 days and you become subject to more low ball offers because of a perceived desperation factor.
Understanding how buyers buy, what attracts them and when they will come. Marketing your home gets it to the people. Getting people to the home is pricing !