Factors Affecting Your Asking Price
- Location, square footage, and condition of your home and home’s amenities.
- Level of demand for homes in your area.
- Amount of competition in your price category and area.
- Recent sale prices of homes of similar size and in a similar location.
- Availability of financing and interest rate levels.
- How quickly you need to sell your home.
- Whether you need to sell in order to finance the purchase of another home.
Factors that Don’t Affect the Asking Price
- What you originally paid for your home.
- The cost of improvements you have made to your home.
- What it would cost to build your home today.
Dangers of Overpricing
- Qualified buyers won’t consider your home, believing it to be financially “out of reach.”
- Your home may remain on the market for a longer period of time, growing “stale,” and increasing the perception that there is something wrong with it.
- The highest and best offers usually occur within the first 30 days of listing your home. An overpriced home misses out on this crucial time period.
- Your home helps similar homes that are priced more competitively to sell faster. It demonstrates that these other homes offer more value.
- Lowering your price, later on, gives the impression that your home is “unwanted”.