The most important function of a real estate agent is to help you to price your home accurately so that it sells for as close to the true market value as possible.
I see it time and time again where a seller will over-price a home and the home sits on the market. Obviously, a seller wants to sell a home for as much as possible. I can understand why a seller would think that pricing a home on the higher would leave more room for negotiation. This is only logical. Unfortunately, the residential real estate market is very competitive and buyers have access to more information than ever in today’s digital age. And remember, most buyers also have a real estate agent representing them to make sure that they do not over-pay for a home.
Did you know that if a home is priced just 5% higher than the true market value then it may not sell at all? A home priced within 2% of market value will sell within one week! A seasoned real estate agent will go through the different pricing strategies with his client and make sure that the seller is educated and understands this.
In a hot market, sometimes pricing a home slightly under market value could benefit a seller. The seller will then open the door to multiple offers from buyers and may even cause a home to sell for more than it would have otherwise through an emotional response (i.e. people want what other people want). I always encourage my clients to price their homes as accurately as possible by not only understanding the competition (other homes listed for sale), but also looking closely at what has sold in the last six months to one year.
Did you know that your best chance for selling a home is in the first 30 days? Pricing plays a big part of generating the buyer traffic necessary to accomplish this. A seller’s buyer pool diminishes every week, the longer the home sits on the market. Sometimes I compare buyers to bees. Do you want a swarm of bees coming to view your home or a single bee that just happens to fly by? Accurate pricing will help attract a swarm to your home.