Pricing your home is probably the most important decision a homeowner will make when selling their home. We have an adage that we use, that the worst house in the worst location priced correctly will have a bidding war. We realize this is a very emotional decision but first and foremost this is a business decision. Making a pricing decision based on emotions, generally leads to pricing a home to high in price. The key thing to remember is that you choose the price. Our job is a coach, we can advise you but the decision is all yours.
Our philosophy is simple, at any given time there is a pool of buyers waiting for that new home to come out, they have lost several homes in the past due to waiting or underbidding. They are at the point that they can’t lose another home. The fear of loss is a great motivator. When your house comes on the market the first 10 days are critical. You want buyers to bump into other buyers and create a sense of urgency for each of them. How do you think pricing your home too high would affect those buyers?
BEWARE ...of agents who tell you a high price to get your listing
Most common pricing objections heard from sellers, really have no relationship to value. Some of the most common ones are: "Another Agent said it was worth more.” "Our home is nicer than those houses.", and "People always offer less than asking price.". Others include "We can always come down on our price.” "We have to get that much out of our home.", "My neighbor was able to get his price.", "Let's try it at our price for a month or so.", "The buyers can always make an offer.", or "We paid more than that for our home."
Obstacles to proper pricing include incompetent Agents who will accept a listing at any price the seller puts on it. Sometimes neighbors will lead the seller to believe they got more for their home than they did.
Should I Buy or Sell First?
There are several factors that affect this decision. One is, do you have a certain amount of money you need to profit from the sale of your home to make the move? Another is, where you intend to go, how is the inventory of homes when you looked? Have you seen things there you liked? Do you have down payment to go ahead if you do find a home before you sell? Would you consider taking an equity line of credit to get down payment funds if you needed it?
If you are looking in a neighborhood where inventory is really an issue or you only like 1 out of 50 homes you saw, you might want to consider buying first, but the key in this situation is to base the move on netting a conservative amount of money from the sale of your home, meaning if your home is worth $450k would you consider netting 435k-440k? which is super realistic and your worst case scenario. You may net more but if you got this, would this work for you? Than feel comfortable buying first.
Another scenario is that for you to make the move, you must net from selling your home $450 and if not you cant swing it, but market value shows a price of 430-435k, we highly recommend selling your home first.
When selling, then buying price is important, but terms play a very important role. Taking the $450k value scenario, and we get 2 offers one is $452k (over asking price) but they need to move, be in 30 days vs. $448k, but if you want to move in 30 or 100 days either is fine. Terms may sometimes out weigh price.