Pricing Your House is an Art
Pricing your house is not a science.
Scientific findings must be verified experimentally. To prove a quality of gravity, Galileo dropped a feather and a lead weight from the Tower of Pisa. This experiment can be repeated by others. If the results are recurring, then it is a matter of science.
Pricing your house is more art than science. No pricing experiment can be replicated because no two houses are identical. Also, even if you attempt to sell the same home more than once, the collection of interested buyers is continuously changing. So many external factors affect the sales picture, even the daily news.
We also must consider the attachment many of us feel for our homes. Even the most unemotional homeowner knows there are two different ways to place a price on their home. There is the amount the home can be listed for, and there is the value the home has to their family. With any luck they are not completely dissimilar. Regardless, it is always going to be the value the home can be sold for that reigns supreme.
Three Tactics In Pricing Your Home
Now that we know no pricing approach can be scientifically based, the most effective plan it to adhere to some widely accepted standards. We guide our clients to tackle the pricing dilemma in the following ways.
- Research the market as potential buyers would. Find similar properties and see what the asking prices are and what they sold for. This is where our research can be most useful.
- After you have determined the range where your house sits, find “holes” in that span. Often there will be an obvious break in asking prices. One excellent tactic is to price your home in that gap.
- After you have decided on an asking price, another approach is to change it to the next ”99” number. If you are sitting at a $305,000 asking price, think about lowering it to $299,999. Although everyone knows this maneuver, its use is so commonplace no one feels duped. People will always respond to that lower price as though it were a much steeper discount.
Pricing your house correctly is one of the multiple steps that go into a winning marketing strategy. Give us a call today for a no cost, no obligation meeting.