Price your Home to Sell
Trying to determine the price of your home in the current real estate market? You are not alone. An article in the Wall Street Journal recently published says setting the right price for your house is more important than ever. Click here to read the article, but following are some guidelines for setting your price:
1) Looking Slim–It’s better to say $199,000 than $200,000. Comparatively, $1,000 isn’t a large amount of money when you are selling your home, but it might make a huge difference in the buyer’s eyes.
2) Stacking Up–Let potential buyers know if a third party thinks that your asking price is less than what the house is worth. For example, share with buyers the appraised value of your house if it is more than your asking price.
3)Sending Messages–Vicki Morwitz, a marketing professor at New York University, recommends using an odd number instead of a round number if you want to suggest the sales price is a bargain. On the other hand, use a rounded number if you want to suggest quality. (i.e. the price $254,765 suggests s a bargain, but the price $255,000 suggests quality)
4)Cutting Prices–When reducing your price, make the reduction a number that is easy to calculate, such as a $20,000 price reduction. A price reduction dropping the price from $199,000 to $187,750 is harder for buyers to compute.
The article left out a very crucial part of setting the right price; have your real estate broker review the current market where your property is located. He or she should evaluate the properties that have sold in the past, why they have sold and others haven’t, and know your property’s competition.
