For many homeowners, one of the most stressful parts of the home selling process is the goldilocks question of how to price their homes – price too high and the home might take too long to sell, price too low and it could mean missing out on a huge upside.
We sat down with Robert DeFalco, Owner of Robert DeFalco Realty, to discuss effective strategies that homeowners can employ to accurately price their homes.
The Perils of Pricing Your Home Too High
Maintaining a pristine home to justify a high price tag can be a daunting task. Every corner, from carpets to bathrooms, must be in top-notch condition. “Keeping up this appearance can be challenging over time,” said DeFalco, “As your home lingers on the market, stress levels can soar.”
Another consideration is having to continue to pay the mortgage while waiting to attract buyers willing to pay more per square footage than for other comparable homes. As DeFalco explained, “Essentially, every month you keep paying that mortgage means pouring money into a house you won’t get back. Moreover, when your home is priced too high, negotiations may not go in your favor.”
Pricing your home too high can also result in appraisal challenges. “Even with a potential buyer in place, issues may arise during the mortgage approval process if you price your home too high,” said DeFalco, “Banks require appraisals, and if your home’s value doesn’t align with recent comparable sales, the selling process can be delayed.”
If a home sits on the market for too long, it can also create a vicious cycle, whereby potential buyers might determine that there could be a serious reason why the home has not sold yet. As DeFalco elaborated, “Overpricing can lead to your home languishing on the market. The longer it sits, the more likely it is to become stale. Once interest wanes, it’s challenging to regain buyers’ attention.”
Another consideration is that many homebuyers start their property search online. On real estate websites and apps, they typically filter their searches within specific price ranges. “If your home is priced higher than the range they’re searching in, your home won’t appear in their results,” said DeFalco, “So they won’t even know it’s for sale.”
Pricing Your Home Just Right
Rather than basing your home’s price on construction costs or personal financial needs, homebuyers should carry out market research to arrive at a fair price. “You should look up recent comparable sales in their area to determine a competitive yet attractive price,” said DeFalco, “While underpricing can mean settling for less, overpricing is riskier and can lead to a stagnant listing. So, in most circumstances, it’s better to underprice than overprice.”
For homeowners who price their home just right, they may even receive multiple offers, and that increases the odds that some of those offers will be over the asking price. “The right price assures potential buyers that you and your real estate agent have done thorough research,” said DeFalco, “It instills confidence in the buyer that they’re making a sound investment.”
Tips For Increasing Your Home’s Value
Just like with dating, first impressions matter in real estate. According to DeFlaco, homeowners don’t have to spend a fortune to enhance their home’s exterior. An inviting look that attracts more potential buyers can be achieved at little cost. “Fresh paint, vibrant doors, and a well-maintained lawn can work wonders,” said DeFalco.
Another strategy that works wonders is for sellers to properly identify their target audience. “Work with a skilled real estate agent to identify your potential buyers,” said DeFalco, “Then you can tailor your property presentation to cater to their needs and preferences.”
On a cautionary note, DeFalco maintains that there is no need to overspend on upgrades. “While improving your home’s appearance is essential, avoid costly overhauls,” said DeFalco, “Instead, focus on smaller, impactful changes, such as repainting cabinets as opposed to remodeling the entire kitchen.”
If you are a homeowner ready to embark on the homeselling journey, consider Robert DeFalco Realty. With a team of over 350 trained professionals, Robert DeFalco Realty will sell your home quickly and efficiently. “Our approach to pricing ensures you receive an accurate valuation based on the latest market data,” said DeFalco, “We’ll pinpoint the perfect price for your home, so you can focus on enjoying the financial rewards of a successful sale.”
About Robert DeFalco
Robert DeFalco Realty was founded in 1987 by Robert DeFalco, a real estate Broker/Owner who wanted to help families achieve their dream of homeownership. Through the philosophy ‘Treat People Well,’ Robert DeFalco has grown into a successful real estate agency led by a professional team of highly motivated real estate associates with experience in residential, commercial, and new real estate development. For more information, please visit http://defalcorealty.com/