Why Your Initial Listing Price Is Crucial
Posted by Garman Group on
Setting a selling price for your home is just one of the many decisions you and your REALTOR® must come to. There are a myriad of reasons why you might price your house incorrectly. It may be because you want to get the most money out of your home so you price it high. Or you may be looking for a quick sale so you price it a little lower than it should be. But coming up with the right fair price is crucial — here’s why.
People Will Know Your Home’s True Value
Overpricing your home can be a bad move. Today, more than ever, people follow MLS listings to get ideas on home prices so they'll likely know or find out what comparable neighbourhood homes are worth. If people see yours is overpriced, they tend to move on to another. Unless you have done extensive home renovations on your property, your home should have similar value to other homes on the market in your neighbourhood.
If you initially overprice your home, you'll likely have to lower your selling price, which isn't great. While the asking price may have to be lowered for a variety of reasons, this can be a red flag to some buyers that your home has something wrong with it.
What about underpricing your home? If you list your home for significantly less than it’s actually worth, you'll get a lot of interest in this hot Victoria housing market! You may receive multiple offers and have to sort through them which may not sound like a bad idea. The more, the merrier, right? But going through a bidding war, even as the seller, can be stressful. Besides, what happens if all the offers still don’t come in quite at what the home is worth? You end up losing money.
Buyers Will Have Confidence In Your Property
If your home is priced right, potential buyers will be more confident in placing an offer. They may even place fewer contingencies to go along with it. If the sale price of your home reflects what the property is worth, plus any home renovations you have done to improve its value, potential buyers will see this, respect the value and be happy to pay that price. If you're lucky, they may go even higher.
You’ll Reflect Your Home’s REAL Value
ther than being able to enjoy an updated home, the point of doing home renovations, especially on kitchens or bathrooms, is to raise the value of your home. This is why it’s important to have a qualified REALTOR® on your side, too! Although your home’s base price is likely the same as your next door neighbour’s home of the same size, home renovations, along with boosting your curb appeal, will add to that value and you can ask for more — fairly.
Your Qualified REALTOR® Can Lead You To The Right Price
As you can see, there are quite a few factors to come to a listing price for your home. A qualified REALTOR® is the best person to help you come to a fair price. At the Garman Group, we know all the ins and outs of the Victoria housing market and will guide you on which renovations you can do to improve the value of your home. If you have any further questions about listing prices or real estate, please do not hesitate to contact us!