Over his years of consulting with sellers Bill’s experience has found that there are 3 strategies for pricing a house to sell.
Each has it’s own advantages and drawbacks when it comes to attracting the “right buyer”, they are;
The Traditional Method.
By pricing your home 3-5% above recent comparable sales you know that you are not leaving any money on the table. If the price you select does not generate the interest or activity in a specific time frame you can lower the price until you find the Goldilocks zone that generates interest, and offers.
The drawback of this method is it can take a little longer to get a house sold. It can create the impression that the house is stale or uninteresting as it has been on the market for a long time. Finally you risk missing out on the “right buyer” who may have bought your house, but at the time they were looking it was at a price they would not consider.
The Little More Method
By selecting a price very close to recent comparable sales you will cause buyers agents & their buyers to get very excited about the property. Knowing it’s well priced they will not hesitate to show the property, and should the “right buyer” be interested, when they bring an offer it will be very close to the listing price.
However if the “right buyer” for your house is not shopping right now, you may have to wait for them to materialize or return to the Traditional Method.
The Bid Up Method
In low inventory markets, or with a premium houses you could select a price around 5% below the comparable sales. This will cause more buyers and buyers agents to consider the house, and increase the likelihood of more than one buyer making an offer. At that point they are asking themselves how much more do I need to pay than the other buyers, and creates offers that may go above the original estimated selling price.
In the wrong market, or for houses that do not draw a lot of attention, there is the chance the house does not sell quickly and will have to return to one of the other prices.
If you’d like to understand any of these methods better, or chat about real estate give Bill Meyer a call at 613-788-7418.
Or visit our website to learn more about selling your house.
Bill Meyer, Sales Representative
RE/MAX Hallmark Realty Group, Brokerage
613-236-5959 (Office) ~ 613-788-7418 (Direct)