Welcome back, Mythbusters!
When it comes to listing your home, you want to sell for the highest amount possible, right? Of course you do, and it is our goal to deliver that result as well. To ensure that this is the case, our listing agents conduct extensive research into your home, the neighborhood, the market, and much more to arrive at a market value for your home.
Your agent will provide a pricing recommendation for your home, although, at the end of the day the decision of how much to list your home for is up to you. Again, we understand that you want to make sure you’re not leaving money on the table, and for some sellers, this means pricing their home above market value. This brings us to our myth!
The Myth: “I’ll get the most money for my home by pricing it above market value.”
When it comes to getting the most money for your home, the reality is not as simple as testing the market at a higher price. First and foremost, the goal is to sell your home!
Just as your listing agent has prepared market information to arrive at a recommended price for your home, buyers’ agents are doing the same work. When a buyer is considering your home against other similar homes in the area, price is often in important factor in their ultimate decision. Therefore, you may find your home being passed over, or not considered at all due to the inflated price.
The other important factor to consider is days on market. Often times we find that sellers who list above market value end up sitting on the market for longer, and whether right or wrong, buyers often see a higher “days on market” number as a red flag. Even once the seller lowers the price to be at or even below market value, the “days on market” metric is already working against them.
Here’s what we recommend:
1. Price your home at market value. Our goal is always to bring multiple offers on your property, and pricing your home to sell is an effective step to getting there. A multiple offer situation can also result in you getting above list price for your home, and in less time!
2. Test the market, but be quick to reduce if needed. The decision of what to list your home for is solely your own, and should you choose to test the market, we recommend that you are prepared to make an aggressive reduction after 7-10 days should no offers come through. This will allow you to test the market without having your home sit on the market for too long.
If you have any questions about your home’s market value or would like to talk through listing strategies, we are more than happy to do so. Simply request a call on the form below, or give us a call at 972-608-0777.
Check out the rest of the VPP Blog for market updates, guides, and more!