Many people are pushing their luck when they try to test the market. There are, however, times when it’s okay to do so.
I’ve been a real estate agent for 34 years now, and sometimes my selling clients tell me they want to “test the market.” If their home is worth $500,000, they might say they want to try selling it for $575,000.
This usually doesn’t turn out well for them because it tends to scare buyers off. However, there are times when it’s appropriate to test the market.
“Avoid testing the market when it’s pretty clear what your home will sell for, since you’ll lose a lot of your potential buyer base.”
- When you have a custom house/have custom features. I once sold a three-story house with no yard, which appeals to a very slim number of people. In this instance, I felt like it was okay to test the market and try to find that buyer.
- If your house is unique in your neighborhood.
- If the market is in flux. If your market is rapidly going up, it might be a good time to test it.
I would avoid testing the market when it’s pretty clear what your home will sell for, since you’ll lose a lot of your potential buyer base.
If you’re thinking of selling or buying a home, feel free to give me a call. I look forward to talking with you.