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Do You Have A Pricing Strategy?

Do you have a pricing strategy? I have never met anyone who didn't want the most money possible when they list their home for sale. Even me. I get it. This is why a pricing strategy matters.

Did you know there are three ways to price your home? Let's talk about how to make sure you price your home strategically to ensure you get the most money for your sale.

Number one, you could price your home at the highest price, higher than your agent's suggestion. Sometimes you'll hear a seller say, "We could always go down." That's true but it can be risky. There are a lot of studies that show pricing too high can net you less in the long run. I can show you lots of homes where this is the case. As agents, we don't really like this option, because it typically does not make you as much money. If you insist on pricing your home higher than it should be, you can't stay too high for too long, or you risk having your home sit on the market, past it's seasonality and sell for less than the initial market value.

Number two, you could price your home at exactly the market price. In this option, you sell in a reasonable amount of time, but you're probably not going to have very many showings, which means that your home won't get as many offers, and you will likely sell right at list price. Pricing it this way will sell faster than the home that is priced too high, and probably not as quick as a home priced just under market value. In a seller's market, this could prove to be the wrong strategy, so pay attention to number three.

This brings us to number three, pricing your home just under market value. This is where the magic really happens. I'm not talking about tens of thousands of dollars under market value, but as the saying goes, less is more. Not only does this attract more people to your home, many times it also generates multiple offers. In this scenario, you are not chasing the buyer, they are chasing you.

In my experience, you get offers higher than you would have gotten if you had priced your home at market value. Of course, every situation is different, but usually option number two or three are the best ways to go.

If you have any questions or you want more information about any of this, give me a call. I'm always here to help. And remember, whether you're buying a home or selling a home, it all starts with a dream. Let's dream together.


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