Set Selling Price

There are four categories of pricing:

(1) Cleary Overprice
We all know that every seller wants to sell his/her home for the most amount of money possible. Therefore many homes are priced 10%-20% over the market value. This is not a smart way to sell the home for top dollars, because the market won't be fooled. This will result in 2 important downsides:
  • The home will be labeled as "trouble" home by some agents, leading to less potential buyers and lower offers.
  • The home will expire; off the market, forcing sellers to go through the listing process all over again.

(2) Fairly Overpriced.
About 75% of the homes on the market are 5-10% overpriced. These homes will also sit on the market longer than they should.

(3) Correct Market Price.
Supply and Demand affects the market price. If the house is set at market values, it should sell within a reasonable time-frame and very close to asking price.

(4) Below Market Price.
Below market price does not guarantee quick sale, nor selling at a desirable price. It will attract a lot of potential buyers competing for it, however, the winner's price might not be the desirable price. Not every type of property or location is suitable for this strategy.