Guide to Home Pricing Strategies
Guide to home pricing strategies
Getting the best deal is the ultimate goal of every selling and purchasing process in the real estate world. Each side does their best to get the best price for the property. Therefore, if you plan on selling your home, you need to be well prepared because the process is not that easy as it sounds. There are three scenarios you can go through when selling a home. When setting a home price too low – you risk losing the money. On the other hand, high prices tend to keep homes longer on the market, forcing you to spend more on maintenance and additional expenses. However, there's a way to get the third scenario – finding the perfect balance between the house’s market value and your financial goals. This guide to home pricing strategies will help you determine the home price just right – which will result in a fast and successful sale.
Things to know before putting your home for sale
Before you decide on a house selling price, there are certain factors you should be aware of. These include the target buyer – knowing who is expected to buy your home will certainly help establish the perfect price. Furthermore, be sure to know the competitors, the conditions and prices of their homes. And finally, be realistic about your selling plans - determine if you need to sell your home in a hurry, or you can wait a little longer.
Research the market and choose one of the two main strategies
Depending on the demand, you can choose to set your home selling price higher or lower than the average. This depends on the timing. To be more specific, you need to research the current market situation and check if you're dealing with a seller's, buyer’s, or a balanced market. Sometimes, choosing a lower price will ensure the fastest sale closure. This is an excellent home pricing strategy if you’re in the middle of a buyer’s market. This means that demand is lower than the number of homes for sales, so sellers need to be more competitive. The chances are you’ll sell your home before everyone else if you set the bar a bit lower. Furthermore, a lower price will attract more potential buyers, which often results in a bidding war. This way, you can get more money than initially expected and have the best deal possible.
However, in a seller’s market, setting the selling price higher can be a successful strategy. If you do the research and see that it’s the perfect time for a higher price – go for it! After all, it’s something you can easily change if the house spends more time on the market. It can also easily happen that a buyer recognizes your home's actual value and realizes that it's better than others in the area.
Finally, dealing with the balanced market requires additional pricing strategies. Let's see what they are.
Is the price way too low or way too high? Different home pricing strategies can give the best results.
More home pricing strategies to try
If two previous options don't work for you, there are other ways to consider.
Play it safe
Pricing your home at the market value or very close is almost always a successful path. However, the tricky part is determining the real home value and not losing any money. The safest way to do it is with the help of a professional real estate agent who has a lot of experience with homes in the same area. They can help you analyze all the critical factors and get your property's closest value.
Remember: looking for 'the safest' pricing is essential when moving to your new home, too. Make sure you compare moving companies, get recommendations and ensure quality service at a fair and reasonable price. Moving services that are way too cheap or too expensive are often suspicious in terms of quality and professionalism.
Focus on the left digits
This strategy is used not only in real estate but in every aspect of shopping, too. Set the price that gives an impression of a great deal. You will notice they all end in 99. If you try to sell your home for $499,000, you'll probably do it much faster than if you price it $500,000. This psychological trick is used as people tend to pay attention to left digits, making the price more appealing.
Pick the right season
In some areas, selling seasons can affect the prices a lot. Cold winter days are not popular among homebuyers, lowering property prices. On the other hand, if you choose to sell your home in the peak season, you can easily set the price higher and expect closing the sale much faster. These price points can vary a lot – sometimes even 20 percent. Therefore, be careful when choosing the best timing to put your house on the market, as it will change the pricing strategy.
Once you put the house on the market
It's time to start making plans for the upcoming move. The focus should be on the organization and the expertise of your moving company. Having someone you can trust is essential, especially if your needs go beyond primary services. Make sure you choose a professional team that can safely take care of your belongings, reducing stress levels to the minimum. And what's left for you to do is pack, move to your new home, and wait for the perfect buyer to close the deal.
In conclusion
Choosing among the best home pricing strategies is not always an easy thing to do. However, you can find the right answer if you explore the current market situation and be realistic. And finally, be sure to listen to your gut – sometimes taking a risk or playing it safe is only successful if you truly believe in it.
