The biggest mistake sellers make is pricing their home incorrectly from the very beginning. And get this…
The longer a home sits on the market, the more buyers question what’s wrong with it.
Oh, that’s not where we want to be!
The good news is with these easy pricing tips, your home will sell quickly (for a profit, too). In fact, the average home stays on the market for 51 days.
Setting the price correctly when you first list is more important than ever.
Here’s What You’ll Learn
- Pricing your home correctly the first time is key
- Pricing competitively against the market
- Psychology and Pricing
- Timing your Pricing
- Adjust your Pricing Quickly when you need to
Pricing Your Home Correctly the First Time Is Key
Selling a home isn’t a guessing game when it comes to pricing. Sure, there are some psychology and number tricks that can work well. But beyond that, you need to have a good handle on where your home will fall in the market to sell it quickly.
The last thing you want to do is just throw out a random price, stick it on the market, and “see what happens.”
Why? Buyers these days are extremely savvy. They have all of the internet at their disposal… and they use it!
In today’s real estate market and especially if you’re looking to sell a house fast in Omaha, price the home at the right point right out of the gate.
The price is too high and it will not sell. Price it right and you’ll have offers, possibly within days.
Overpriced homes get stuck trying to chase down the market. Sellers drop the price after a while and most often sell for less than if they had priced correctly to begin with.
Buyers see a home sitting and they immediately think the seller is desperate. Don’t let this happen to you!
The Competitive Pricing Method
This is by far the most effective pricing strategy for a home that you want to sell quickly…
Price at (or just below) market value.
When you price at market value, it puts the home in front of the most qualified pool of buyers — those who are serious about buying. Agents and consumers know the home is priced fairly and are eager to see the inside.
The home gets more showings. More showings lead to more offers.
The best part?
This could get you an offer in a matter of weeks, even days, if it shows well. And there’s even the potential to get multiple offers, too!
It’s a common misconception that pricing a home at market value means leaving money on the table. But buyers were typically paying 100% of the asking price according to National Association of Realtors data.
Pricing Using A Comparative Market Analysis
Smart pricing always starts with data.
Specifically, a Comparative Market Analysis, or CMA, is when you compare your home to other similar properties in the area that have sold within the past few months.
Some of the factors that a CMA looks at include:
- Square footage and overall size
- Condition and any upgrades
- Neighborhood and location
- Features and amenities
The Comparative Market Analysis will come back with a realistic and current price range based on what buyers are actually paying these days, not sellers’ own ideas of what their home is worth.
And the only way to get this data is by working with a knowledgeable agent to create an accurate Comparative Market Analysis.
Psychology and Pricing
Here’s a little trick of the trade that real estate agents have been using for years:
Odd number pricing works.
Instead of listing your home for $400,000, price it at $399,900. Instead of $550,000, go with $547,900.
Why? Because statistically, properties listed with odd prices sold an average of 10 days faster than those that listed with even prices.
Why? Odd numbers create a perception of precision and fairness. Buyers subconsciously feel these prices are carefully considered instead of being arbitrary, round numbers.
Even numbers feel static and awkward, while odd numbers feel natural and deliberate.
This can also be used for the price filters used on real estate search sites. Many sites use filters of $25,000 or $50,000. So if a home is priced at $352,000, a buyer that sets a filter max at $350,000 won’t see it.
But price it at $349,900 and boom, the home pops up in their results.
By moving it down just $100, the home now has a whole new set of people viewing it. And the more eyeballs it gets, the more showings it will have.
Timing and Pricing
The timing of selling a home also makes a difference when it comes to pricing.
Spring and summer tend to be the two peak seasons when it comes to selling. Everyone wants to move before the school year starts, plus the warmer weather has more people willing to come look.
In those seasons, homes can be priced more aggressively as buyer demand is greater.
During winter and fall, the markets slow down. There are less active buyers and inventory tends to pile up. Homes listed in off-seasons need to be priced more competitively.
Adjust your Pricing Quickly when you Need to
You also need to know when and how to adjust your pricing strategy when the time is right.
The market shifts. Buyer attitudes change. New inventory comes and goes.
Look for these signals:
- Zero or few showings in the first two weeks
- Buyers’ feedback that the price is too high
- Similar homes selling lower
- The home is already at market for 30+ days
If any of these apply, it’s time to adjust. Don’t sit there for weeks or you may have already lost it. Once a home has sat on the market a while, buyer interest starts to evaporate.
Agents recommend always being prepared to cut the price within 10 to 14 days if there is no activity.
Making the Right Cuts
Price cuts should be significant. Dropping $2,000 on a $400,000 home isn’t going to be noticed by buyers. A cut of $10,000 to $15,000 will be.
Cuts should also account for those pesky search filters. Dropping from $405,000 to $399,900 crosses into the lower filter band and now the home is getting a whole new audience.
Pricing and Other Tactics
In addition to pricing itself, a few other tactics will help you sell your home faster.
- Professional staging — 29% of agents said staging increased the offer amount by 1% to 10%.
- Professional photography — Homes with professional photos online get more buyer attention and can command higher listing prices.
- Flexible showing schedule — The more you can make it easy to view the home, the more potential buyers that will see it.
All of these techniques combine to make the perfect listing.
The Bottom Line
Smart pricing is the most important and must start with a solid understanding of current market conditions. The most effective strategy will be a combination of:
- Competitive pricing versus recent comparable sales
- Odd number psychology tricks
- Positioning the price for search visibility
- Willingness to adjust quickly as necessary
The sellers that “get it” will have homes that sell fast and often at a higher profit than those that price too high to start.
Get the pricing right and watch the home fly off the market. Get it wrong and all of a sudden your home is not getting shown and buyers are losing interest.
Smart sellers work with experienced agents who really understand local market trends and can execute these pricing strategies.
The end goal is pretty simple: sell the home quickly and for as much money as possible without leaving any on the table.