In the past, I’ve written about the importance of pricing your home to a reasonable market value. And while that is still good advice, it is not the only way to go. In competitive markets, many people opt to price their homes higher in order to sell faster. This may seem counterintuitive, but there are many reasons this could be the smart move to make.
Most consumers are familiar with the phrase “you get what you pay for.” This usually refers to lower priced products being inferior, but the rule also applies to more expensive products. We’re conditioned to see value in products that are more expensive. This is especially true in real estate. When a buyer is browsing available homes, and comes across two similar listings with different prices, there is a good chance they will assume the more expensive home has features or additions that make it worth the extra money.
Open houses tend to attract a lot of interest, though the majority are not considered serious buyers. By pricing your home slightly higher than market value, you could narrow your selection of potential buyers by weeding out the ones who would balk at the asking price.
Attracting a New Class of Buyers
When house hunting, many buyers will request that their realtor only show them homes within a certain price range. Pricing your home above market value could open your home up to a class of buyer that would have been previously uninterested in your home’s price bracket.
Room for Negotiations
Everyone loves to haggle. By pricing your home higher, you could attract a serious buyer who is interested in the home, and wants to negotiate on a lower price. The buyer gets a perceived deal, and you get a fast home sale. It’s a win-win!
If you have more questions about the best asking price for your home, I am here to help you. As the #1 realtor in Encinitas, I have the experience necessary to help you through every step of the process.