Price is the number one factor that most homebuyers use to determine which homes they consider. While you set the asking price, the selling price is determined by the buyer.
Some common reasons for overpricing include:
- Over-improved property
- Original purchase price too high
- Desire for negotiating room
Most of the activity on your home will occur in the first few weeks. Pricing a home properly creates immediate urgency in the minds of buyers and agents. There is a pool of buyers who have seen most available homes in their price range and are now only waiting for new listings or price reductions. A buyer that has been waiting may not see your home if it is priced too high. Sometimes, a price reduction may be too late, as interest by both buyers and agents may have waned.
The role of a real estate agent in pricing is to provide you with a comparative market analysis, a comparison of recent homes with similar amenities that are available, in escrow, and sold. There is no exact price; your home is worth what a buyer is willing to pay. The market determines value; together you and your agent determine asking price.