5 Ways to Price Your Home To Sell!

First impressions are lasting impressions and often the price is one of the first impressions buyers receive.  So pricing right is very important.  You have to understand not only market condtitions but also how buyers think.

1.  The Price is Right

First, take a look at the competition.  What are your neighbours asking for their homes?  What have homes in the area sold for?  How long are homes on the market for?  If you price a little below your competition you will be able to generate more offers and potentially drive the price higher.  Set the price too high at the beginning and you may be the “last man standing”.

2.  The Penny Off

Successful retailers know how to price their merchandise.  Take Walmart for example, most of their prices end in a 7.  Why?  It is proven that even with a few pennies difference say from $3.00 to $2.97, buyers perceive they are getting more for their money.  So instead of listing your home for $490,000 a price of $489,997 will catch the eyes of more buyers!

3.  Refer to the Competition

When speaking to buyers or advertising your home for sale, emphasis the price as being better than the competition.  Just increases interest and chances of inflating the price.

4.  Be Clear With Your Message

By picking a more precise list price like $515,495 will give the impression you have given serious thought to your price and that you are not willing to negotiate at that bargain price.  This way when offers come in they may be higher than would have been if you had listed at $516,000.

5.  Price Changes in Easy to Calculate Numbers

If your homes sits on the market for a while it will become stale and you need to consider changing the price.  If you are using a penny off price make sure you make it easy for the buyer to calculate how much of a reduction there is.  For example, a new price of $479,997 from $489,997 is a $10,000 price reduction vs going from $489,997 to $483,995.  Much harder for the buyer to calculate.

Use as many tricks as you can to maximize the amount of cash your home will be worth in your pocket at the end of the day.  The longer it sits, the less it is worth so use all the tools at your command and listen to the advice of your agent.  They know, after all they are the professionals.