Are You Pricing Your Home for Market Position or Are You Pricing in the Margins?

When selling your home, it’s tempting to do what I call ‘pricing in the margins.’ That is, instead of pricing for top market position, you feel compelled to build in ‘negotiating room.' Homebuyers will want to feel like they're getting a deal, right?

Well, not exactly. Remember, we are looking to attract your best buyer, not the stingiest one.

Pricing to build in wide margin for negotiating is a common mistake. This is true even in a hot market where homes are selling quickly.

Consider a scenario where there are twenty homes listed in your price range and geographic market area, and your home is one of those twenty listed for sale. When a homebuyer goes out to view properties, they can only select one to make an offer on. How will the homebuyer choose the winner?

Homebuyers and their REALTORS® intuitively know which homes are the best value for the money. Those homes sell faster and for more money. The reason is simple: urgency creates value.

When buyers perceive value, they're motivated to make a great offer and make it now.

How will you put your home at the top of the list? Targeted marketing matters. Presentation and staging matters. But if you’re priced in the margins, your home may go from Number One choice to Number Two or Three, if you make Top Three at all.

You want to be the Number One choice. Your best buyer will get excited, choose your home, and make a strong offer. As. Soon. As. Possible. (Read: 'What if someone else gets this fabulous property before me? I'd better make an offer right away!')

It is counter-intuitive, but pricing for top market position—pricing for strength—will earn you top dollar, every time. Your best buyer will jump and jump high to get the best home on the block.

Request a market evaluation and find out how to correctly price your home in today’s market.