There are a number of strategies to pricing a property right. For example, Realtor Magazine did a study that suggested that a house listed at just under a round number (for example, $199,000) sold for 2-3% higher than a house listed at the round number (in this example, $200,000). Readers call this the “99” strategy.
Here are a few more tried, tested and true recommendations for pricing a property in a seller's market:
1) Price it so that more than one buyer will be interested
The strategy to pricing it slightly lower to attract more buyers is a highly recommended approach. Buyers will get more interested and more willing to pay more if there are other buyers who want to purchase the property.
Pricing the property too high can leave your listing on the market too long, causing people to lose interest. Your best shot for a great offer is within the first few weeks of your house being listed, and the most reliable strategy to help make this happen is to price it just below the comparable prices for similar properties sold in your area.
2) Price it so that it can be found on Realtor.ca
Buyers will often cap their viewing at a certain price point, say $200,000 or $250,000, in part because realtors will often e-mail new listings to prospective buyers up to a specific price cap. If you price you house just over a buyer’s price range, say $205,000 or $255,000, you risk losing out on a potential viewing simply because the listing wouldn’t be seen by that buyer.
3) Have a Plan B
Everyone hopes that they will get an offer on the first day their house is listed. However, even in a high demand market, a well-priced house will often still take 10-21 days to sell. This means that if the market isn’t as strong or if your home is over-priced, a little bit of patience is in order.
If you want top dollar for your property, be very mindful of the time that your house is on the market. Statistics show that you will get your best offer within the first month. That means, if you haven’t received an offer in the first couple of weeks, you might want to lower the price in order to attract an offer by the end of the first month.
Before your house goes on the market, speak with your realtor about your pricing plan and when you will sit down to revisit the pricing, in order to keep the listing fresh and interesting to potential buyers. This is especially important if you are planning on initially listing high, but is a good thing to keep in mind for every listing. That way, you and your realtor can be sure to be on the same page no matter what happens.
Thanks for reading!