Which Pricing Strategy Works Best?

Kirk Simmon Real Estate Video Blog

There are many different pricing strategies you can use when selling a home. We’re focusing on the three most common ones today.

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When you sell your home, there are three different pricing strategies you can follow. There are advantages and disadvantages to each one, so we are going to go through them and explain the strategies in further detail:

1. Price it high and look for a “needle in the haystack” buyer who will pay a premium price for the home. The obvious drawback to this one is that it limits your potential buyers. Most buyers in the marketplace now look at multiple homes, so they will know you are overpriced. It could detract from your traffic and cause you to reduce your price later if you can’t find that unique buyer. You could always hit a home run though.

2. Price your home right at its market value based on recent sales. This strategy really has no visible drawbacks. It attracts most of the current and potential buyers and is usually the best strategy. The only possible downside would come if you hired the wrong agent who isn’t quite sure about the state of the market. You could be in for trouble if that is the case.

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Pricing your home at its market value is usually the best option.

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3. Price your home low to create an auction-like atmosphere to bring in multiple buyers and multiple offers. This strategy can be very effective in a competitive seller’s market. It can drive the price way over what the property was listed at. However, you could also end up selling your house for less than you thought if the offers stop coming in or a buyer gets cold feet.

Ultimately, you should pick the strategy that works best for your specific situation. If you have any questions, don’t hesitate to give us a call or send us an email. We look forward to hearing from you!