Uncategorized January 11, 2024

The Importance of Pricing Correctly

It can be hard to put a price tag on your home, especially if it’s where you have celebrated so many of life’s precious milestones. Birthdays. Holidays. Graduations. Bridal Showers. How do you put a price on memories? 

“Well, you don’t,” says Glenn Elliot, Sales Associate at ERA Justin Realty, “Your memories are priceless. Your home isn’t. That’s why it’s best to bring in a knowledgeable but neutral real estate professional to help make sure you don’t price too high – or too low.”

Pricing your home correctly can be the single most important decision when you list your home for sale. “It can mean the difference between getting top dollar quickly,” says Jennifer Darby Metzger, Broker/Owner of ERA Justin Realty, “Or languishing on the market for months, resulting in a lower sale.”

Here are Glenn’s top tips to setting the right price point:

Avoid Overpricing

“Setting a realistic and appropriate price at the outset is crucial,” says Elliot, “Seeing an inflated price could cause potential buyers to overlook your house.”

Also keep in mind online search parameters are often capped at round numbers. “If you have a mental selling price of $399,000, don’t list at $415,000 just to see if you can get it,” says Metzger, “A buyer searching multiple listings with a top budget of $400,000 might not even see yours if it’s higher than that.”

Don’t Underprice 

Some sellers will intentionally undervalue their homes, hoping to cause a bidding war and quicker sale. “It may draw more interest, but underpricing can backfire,” says Elliot, “Some buyers may second guess their quick decision and back out, sending you back to square one.”

Renovation Values

“Sure, an $80,000 new kitchen is appealing to buyers, but that doesn’t mean your home’s price will increase by that exact amount,” says Elliot, “Before you invest in upgrades, analyze your neighborhood’s trends to see if splurging on state-of-the art appliances will increase your resale value, or if buying mid-range will actually get your more bang for your buck.”

Evaluate Comps

One way to assess your local trends is to take a look at recent sales in your area. “Your agent can give you a list of recent comparable home sales that resemble yours in terms of size, location and amenities,” says Metzger, “Together you can use the information to adequately price your home.”

If you’re looking to put your home on the market in 2024, Glenn Elliot or any of the experienced agents at ERA Justin Realty can help. Give us a call at (201) 939-7500.