There are a lot of factors that go into pricing a home, but jacking the price up for wiggle room is a definite no-no. Your Realtor will (should) provide you with a comparative market analysis (CMA) and provide recommendations on a price range to help you determine the right price for your home. As the home owner, the price you list your house for is totally your decision. Realtors are here to guide you and provide recommendations based on the market at the time and in your area, so listen to what they tell you before making your decision.
One of the most important reasons to price your house right from the start is the attention new listings get. A recent study showed new listings rack up almost four times as many online shoppers in the first week compared to a month after it’s been sitting on the market. Take advantage of that new listing attention, don’t waste it! Even if you drop the price after a week or two, your house won’t sit in that “new listing” group – it will basically show that you know you priced it too high and didn’t get any offers (desperation – not a good look). The last thing you want is buyers wondering why people don’t want your place – it’s been on the market for more than 20 days in a hot market? Something’s gotta be wrong with it, right? I had clients say those exact words to me. You don’t want people wondering “what’s the catch” because then, they’re gonna look for it. As if home buyers aren’t scrutinizing every house already!? Why add fuel to that fire? It’s just not worth it.
Don’t forget, just like you have a Realtor in your corner, so do buyers. If their agent tells them it’s overpriced for the area/market, they’re gonna throw out an offer that’s under list price anyways. Negotiation wiggle room – GONE! Keep your mind open and try to get out of the mindset that every single homeowner has: “My house is better”. Easier said than done? Probably, but at least if you have an open mind (and keep these factors in mind) before choosing your list price, you’re more likely to make the right choice.