The Importance Of Pricing Your Home Right From The Start

Dated: December 28 2020

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The Importance of Pricing Your Home Right From the Start


The Importance of Pricing Your Home Right From the Start


Even in today’s sellers’ market, setting the right price for your house is one of the most valuable things you can do. According to the U.S. Economic Outlook by the National Association of Realtors (NAR), existing home prices nationwide are forecasted to increase by 4.5% in 2021. This means experts anticipate home values will continue climbing next year. Danielle Hale, Chief Economist for realtor.com, notes:

“We expect price gains to ease somewhat in 2021 and end 5.7% above 2020 levels, decelerating steadily through the spring and summer, and then gradually re-accelerating toward the end of the year.”

How to Price Your Home to Sell

When it comes to selecting the right price for your home, the goal is to maximize visibility and drive more buyers to your home's listing by pricing it RIGHT. Instead of trying to win the negotiation with just one buyer, you should price your house so that demand is maximized and hundreds of buyers want to take a look. This means you'll also want to use a Realtor with a proven marketing plan to get your home's listing the MOST exposure (like us!).

As a seller in today’s housing market, you might be thinking about pricing your house on the high end while so many of today’s buyers are searching harder than ever to find a home to purchase. But here’s the thing – an overly high price tag does not mean you’re going to cash in big on the sale. It’s actually more likely to deter buyers. A good Realtor will do a thorough price analysis after seeing your home in person to find out what the market is willing to pay for it and what the most strategic price will be. 

Right now, even when there are so few houses for sale, your house is more likely to sit on the market longer or require a price drop if it isn’t priced just right from the very beginning. Stats show that overpriced homes in Pinellas County, FL often end up selling for less money than they would have initially if they had just been priced right from the beginning. For example, we see overpriced home listings all the time in Pinellas County. They hit the market $25k-$50k over what they should really be priced at, based on other similar recent sales, condition, location, etc. They sit for a few weeks with no action...then they inevitably drop the price. The buyers should come running, right? WRONG. What often happens is the home has now been on the market for at least 20 days or so, which is a lot in today's housing market where the average home is under contract in about a week or less. Buyers may see the listing again now that it's in the right price range but pass over it when they see the days on market, thinking something is wrong with it even if it's listed at the proper price. Instead of having a rush of buyers anxious to see the home, in the beginning, the seller now only gets a handful of those original buyers...and the majority won't offer full price like they would have if it had just been priced right from the start.

The Importance of Pricing Your Home Right From the StartThis is why it's important to make sure your house is priced correctly by working with a trusted real estate professional with experience working in the Tampa Bay and Pinellas County housing markets. When you price your home competitively from the start, you won’t be negotiating with one buyer. Instead, you’ll likely have multiple buyers competing for the house, potentially increasing the final sale price and making cleaner offers to beat out everyone else.

The key is to make sure your house is priced to sell immediately. This way, it will be seen by the greatest number of buyers. More than one of them may be interested, and it will be more likely to sell at a competitive price.

Bottom Line

Let's connect to price your home correctly from the start so you can maximize your exposure and your return.

Blog author image

Andrea Hartmann

Andrea is the Managing Partner of The Sandy Hartmann Group and runs the team alongside Sandy Hartmann. She would love to talk to you about real estate! Andrea was born and raised in the Tampa Bay a....

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