As a seller, you naturally want to get the highest possible price for your home. That’s why many sellers are tempted to list their homes at a price higher than what the market analysis suggests.
But is this strategy actually helpful? Or could listing your home at a price lower than the market value make it sell faster?
Let's explore this further.
When You List at a Lower Price
Statistics show that listing a home at around 5% below market value can attract more potential buyers, which can lead to multiple offers and a bidding war. However, pricing your home too low can backfire. When a home is priced significantly below market value, buyers and their agents may assume there’s something wrong with the property. This can result in the home sitting on the market for a longer period of time.
When You List at a Higher Price
On the other hand, if you price your home too high, fewer potential buyers will be interested in viewing it. According to the basic principles of supply and demand, lower demand leads to a decrease in price. The longer your home sits on the market, the more likely you’ll need to reduce the price, which can leave a negative impression on buyers.
Therefore, it’s advisable to list your home within 5% of the market value. In fact, listing at around 95% of the analyzed market price is often the most strategic approach.
I look forward to sharing more helpful insights with you in the next article.
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