Choosing your listing price chooses your competition, so make sure your listing price is close to your home’s market value.
When you sell your home, choosing your listing price, in effect, chooses your competition.
Why? Let’s say you have a home worth roughly $1 million and you price it at $1.2 million. Once you do this, buyers will start comparing it to other homes that are selling for $1.2 million—most of which actually are worth that much. Your home won’t show too well in comparison.
This is why, when pricing your home, it’s so important to price it close to its true market value. That way, the competition you choose for your home won’t be superior to it.
“When pricing your home, it’s so important to price it close to its true market value.”
I couldn’t let them lose out on that much money, so after some struggle, I got them to agree to a reduced listing price of $335,000. That same day, we managed to snag an offer for that price. While we were in escrow, though, the buyer asked for a $200 repair to be done, and despite the fact that they were about to be $200,000 richer than they originally intended, the couple refused to agree to the repair.
They nearly blew that sale and, in turn, their next purchase—all because of a $200 repair. Fortunately, after doing the math for them, I got them to see the light, and they agreed to the repair so the sale could proceed.
The moral of the story? When in doubt, just do the math.
As always, if you’re thinking of buying or selling a home, don’t hesitate to call, text, or email me. I’d love to help you.
P.S., That $335,000 house is probably now worth around $1.2 million.