How do I price my house?
In a word, realistically. That’s not to say you can’t get what your house is worth. You just have to be realistic about its value, and price it accordingly.Your home is only worth what a buyer in the current market is willing to pay. In other words, fair market value.
You will know if your home is priced right by the number of showings. If a property is overpriced, the buyer pool and agents notice the property when it hits the market, but there is not a perception of value. There are no showings and no offers.
If it is priced close to buyers’ perception of current value, there may be some showings, and maybe one offer below the asking price. Without competition and the sense of urgency, there is no need for a single buyer to offer the asking price, and a low offer is usually the result.
If the property is priced a little below buyers’ perception of value, it becomes a hot property. Buyers now perceive high value. The property receives significant showings and possibly multiple offers that could start a bidding war for the property. By setting the price a little below the buyers’ perceived value, the seller has simulated the conditions found in an appreciating market and ultimately, sells the property quicker and possibly for higher than the asking price.
You are hiring an agent to watch the market and determine how your property stands out against the competition. It is the agent’s job to make sure you have positioned your property at a price to drive significant traffic to it to create the best climate for more than one buyer to make an offer.