Don’t Set an Unrealistic Asking Price when selling your home

Don’t Set an Unrealistic Asking Price when selling your home

Setting the right asking price for your home is one of the most critical decisions you’ll make when selling. It’s especially true if you’re managing the sale of a parent’s home—a process that can already feel overwhelming due to emotional ties and memories. In my experience, overpricing a home can lead to unnecessary challenges, while underpricing can leave money on the table.

Let’s explore why finding the sweet spot for your asking price is so important and how to approach this decision strategically.

The Risk of Overpricing

Studies show that the average market time for a home is about 90 days. Homes that linger on the market for longer than this tend to sell for 10% less than their actual value. Why? Buyers start to wonder what’s wrong with the property. Once you begin lowering the price to catch up with the market, you’re already at a disadvantage.

If you aim too high, buyers may pass over your home entirely. Instead of generating excitement and interest, an unrealistic price can cause your listing to stagnate. Remember, the listing price isn’t a final number—it’s a starting point for negotiations. A competitive price has the potential to attract multiple offers, sometimes even above asking.

The Value of a Comparative Market Analysis (CMA)

One of the best tools for setting a realistic price is a Comparative Market Analysis (CMA). This is where an experienced real estate agent like me can make all the difference. A CMA evaluates your parent’s home against similar properties in the area that have recently sold. Key factors we consider include:

• Condition: Is the home move-in ready, or does it need repairs?
• Location: Proximity to schools, parks, and amenities.
• Size: Number of bedrooms and bathrooms.
• Market Trends: Is it a buyer’s or seller’s market?
• External Factors: Proximity to road noise or other potential drawbacks.

Using this data, we can determine a price range that’s both competitive and achievable.

Avoid Letting Emotions Cloud Your Judgment

It’s natural to feel sentimental about your parent’s home. After all, it’s more than just a property—it’s a place filled with memories. However, emotional attachment can sometimes lead to overpricing. It’s important to separate your feelings from the market reality. Buyers are looking at the home objectively, and setting the price based on comparable sales is the best way to attract serious offers.

Why Pricing Low Can Pay Off

You might worry about pricing too low, but here’s the good news: The market has a way of correcting underpricing. If your home is priced competitively, it will attract multiple buyers, which often leads to bidding wars. This can drive the final sale price higher than you might expect. I’ve seen this strategy work time and again, especially in today’s market.

The key question to consider isn’t just about how much a buyer is willing to pay. It’s whether the offer will appraise for that amount. Pricing strategically ensures that your home appeals to buyers while aligning with appraisers’ valuations, keeping the deal on track.

Let’s Find the Right Price Together

Choosing the right price is both an art and a science. It requires market expertise, local knowledge, and a clear understanding of your goals. If you’re ready to sell and want to make the smartest pricing decision possible, I’m here to guide you every step of the way. Click here to schedule a time to connect, and let’s set your home up for success.

#RealEstate, #HomeSelling, #PricingStrategy, #SellYourHome, #RealEstateTips, #TomSommers, #LakevilleHomes, #MinnesotaRealEstate, #RealEstateAgent, #MarketAnalysis, #SellingAHome, #RealEstateGuide, #HomePricingTips, #CompetitivePricing, #HomeSellingAdvice, #ColdwellBanker, #PricingYourHome, #MaximizeValue, #AppraisalMatters, #HomeSellingProcess