Imagine you’re shopping for a new sofa. There are numerous makes and models available. As you’re browsing through the furniture store, you see several that meet your style, comfort, and quality criteria.
You notice most sofas fall within a certain price range; a price that’s within your expectations.
However, there’s one that’s fifteen-hundred dollars more expensive — for no apparent reason. When you ask a sales associate, you discover there’s nothing extra-special about it that would justify the exorbitant price tag.
Would you consider buying that sofa?
Probably not. You might not even give it a second look. Instead, you’d focus on the many other models available that you like and are listed at a price that makes sense.
When selling your home, that scenario plays out similarly.
If you list your property for a price that’s significantly higher than comparable homes on the market, many buyers won’t even consider seeing it. In that case, you’ll lose potential buyers, some of whom might have otherwise made an offer.
That’s why setting the right list price is crucial. You want to attract the maximum number of buyers who are looking for a property like yours.
The reality is, you can’t trick the market. You can’t set the list price artificially high in the hopes that some buyer will pay it. That tactic usually backfires. The overwhelming majority of homes sell for close to their current market value. That is determined by many factors, the most influential being a comparison of what other properties similar to yours have sold for recently.
So the smart move is to set a price that attracts, rather than discourages, the right buyers. When you do, you stand a much better chance of selling your home for the best price.