It’s a tough conversation that comes up in virtually every listing process. As a Seller, you’ve heard that your neighbour a few doors down sold for a certain amount now you believe your home may be worth more or perhaps that sale price is the benchmark but there are actually many factors to take into consideration. Condition of the home, of the local market, inventory levels and other influencing factors need to be taken into account. It is also important to understand that if you are in a buyers market, a balanced market or a seller’s market and how you can price your home at fair market value. According to this chart by the National Association of Realtors, pricing your home -10% of it’s current market value will result in +92% more showings and testing 10% of a higher price will result in only 2% of all potential showings that the property would normally achieve. Over pricing a home will affect a listing’s performance negatively.
It’s vital that you price your home at market value or potentially at below market value in a hot seller’s market.
It is without a doubt that the listing price is the most important component when listing your home. It’s extremely important to avoid pricing it over market value as you may be turning away potential purchasers.