When you list your home for sale, visibility plays a huge role in how successful you'll be. There are pricing strategies that let you maximize your home's visibility.
Today I wanted to tell you a bit about pricing your home properly and how it affects the number of buyers who will look at it.
Selling your home is a big venture. When you sell, you want to have maximum visibility for buyers, and the way you price your house has a big effect on that visibility. You can see a great diagram that explains this in the video above, but the short of it is that pricing your home in a certain way affects how many people will see it.
For a price, your agent will perform a comparative market analysis in which they compare your home to other similar homes that have recently sold in your area. They will then give you a value range of what your home is worth, called market value. By placing your home at market value, 60% of buyers will see it, and most of this action takes place within the first two weeks on the market.
When you price your home slightly above market value—say 10%—the number of buyers seeing it drops dramatically. In fact, your home's visibility in the market falls to 30%- half of what it would be if you priced at market value. If you list your home 15% above market value, that number drops again to 10% of buyers who will be willing to look at your home.
Listing your home below market value doesn't mean it will sell below market value.
So what happens if you price your home slightly lower than market value? Well, if you list your home 10% below market value, we increase the number of buyers who see your home to 75%, which is a huge number of people. If you drop just a little bit more and list 15% below market value, the percentage of buyers who see your home jumps to 90%.
Why is that important? Does that mean your home will sell for 15% less than market value?
Absolutely not!
When you price your home below market value, you end up getting a lot of buyer traffic coming in, and in the Northwest Florida market, chances are you're going to get a bidding war. It's important that when you list your home, you hit it with the exact right price, especially in the first 14 days.
If you have any questions about pricing your home effectively in this market or you have any real estate-related questions, please don't hesitate to give us a call or send us an email. We'd love to help you out.
