Pricing your home

There is no greater challenge you’ll face when selling a property, than to price it correctly. Pricing it too high will create a stagnant listing and perhaps draw low ball offers. Pricing it too low, hoping that buyers will compete for your property, may backfire on you if you’ve over estimated the demand.
As I’ve stated in prior blog posts, online valuations have become increasingly popular, because they don’t require talking to an agent, and they’re relatively easy to obtain. However, any valuation created by a computer matrix is going to be off the mark…the question is, how far off? As a Broker, I’ve seen online valuations off by as much as 30%. That’s a lot of money to leave on the table.
Online valuations were never meant to be a replacement, but a simple guideline. That computer doesn’t know that you’ve updated your home, versus the same floor plan down the street who has not. It hasn’t walked your property, or heard the story of your property. There are too many variables to consider.
Aside from the statements above, it’s important to identify other factors that may affect your pricing decision. What’s the absorption rate in your specific area? Do the current conditions indicate a seller’s market, a balanced market, or a buyer’s market? How does the prior 6 months activity compare to the last 30-60 days? Does it indicate a trend in a different direction? Based on the attributes of your property, who is most likely to purchase your home? Is that a broad audience or a narrow one?
You see, pricing a property is not as simple as logging on to zillow or redfin, or by pulling a few comparables. If you want to sell for top dollar, and have more control over the timeline, take the time to gather all the data needed to make an informed decision.