The Importance Of Setting The Right Asking Price When Selling Your Home

Posted on: 26 April 2017

The asking price you set when you list your house will have a lot of impact on your ability to sell the house and the length of time it takes to sell a house. Because of this, it's important to set the price right from the start. You can learn more about how to set the right asking price by talking to a real estate agent, and following this advice may help you accomplish selling your home faster and for the best price.

People compare prices

The price you set on your house is vital because people compare prices. If people are looking at other homes in your neighborhood, they may wonder why your home is priced much higher or lower than the other ones they have viewed. If it's priced too high, they may not even be willing to look at your home. If it's priced too low, they may worry there is something wrong with it.

The price attracts buyers

Setting the right asking price is also important to attract as many buyers as possible, and this is often why agents recommend setting a price such as $159,000 instead of $160,000, or $199,000 instead of $200,000. When people search for homes, they often begin online by using a price range. If you ask just a little too much, your home may not be found in as many searches.

Loans rely on fair market value prices

Another thing to consider is that a home loan is dependent upon an appraisal resulting in a price that is the same or under the price a person pays for a house. If your home is priced too high and someone tries to purchase it for the asking price, that person may not even be able to get a loan on the house, simply because the appraisal might come in too low.

Dropping the price is often viewed as a red flag

One other important thing to consider is how buyers view homes with reduced prices. When a homeowner cannot sell his or her home, he or she might reduce the price, and this is something that gets advertised to attract people to the home. The problem is that many buyers view price drops as a red flag. They may wonder why the home didn't sell, and they may assume that it is because the home has something wrong with it.

Setting the right price on your home is vital. If you are not sure what your home is worth, get an appraisal of it. For more information on homes for sale in area, talk to a real estate agent.