Imagine you’re shopping for a new car and you have a specific budget in mind. Do you think you’ll consider vehicles that fall below that price range? Probably not. In fact, they might not even come up in your searches.
On the other hand, would you consider buying a car that’s priced above your budget? You might, as long as it’s not too much more expensive and has features that make the purchase worthwhile.
As you can see from that simple example, the list price plays an important role in major purchases, including homes.
That’s why you want to be strategic about setting the list price of your property when you sell.
Just like that car, pricing your property significantly lower than its actual market value can be troublesome. Sure, a temptingly low price might bring in more buyers looking for homes in that price range, but it also might send the wrong message to the marketplace about your home.
Also, if the list price is well below market value, your listing might not come up on the radar screens of some buyers because they’re seeking homes at a higher price bracket.
On the other hand, if you set the list price too high, many otherwise qualified buyers won’t even bother to see it. They’ll wonder why your home is so much more expensive than comparable properties that have sold recently in your neighborhood.
Ideally, you want a list price that’s going to send this message to the market: “Here’s a property that’s in your price range, has some wonderful features, and is worth seeing.”
Setting the right price can be tricky, but when you do, it will help bring in the right type of buyers.