Twin Cities Real Estate News

It’s an understandable conundrum: sellers believe their home is worth more than it is, and buyers think that it’s worth less.  So where is the proverbial “sweet spot” when it comes to the single most important aspect of marketing your home - setting its price?

Consider how many homes are for sale in your neighborhood.  Is that number high?  Then your listing price should be lower than the competition if you want to generate the most interest.  Obvious, right?

But how many of those rival listings are foreclosed properties or short sale listings?  The most critical factor in evaluating this type of competition is the condition in which they are offered.  Neglected homes aren’t likely to affect you, but if they are in good shape and presented at prices 20% below market, you’ve got some hard thinking to do.

If buyers aren’t making appointments or showing up at an open house event, you probably priced too high at the start.  Don’t hesitate to make an adjustment, however, because properties generate the most interest in the earliest stage of the listing.

Finally, give any offer strong consideration.  You may counter, but these days, buyers won’t engage in extended negotiations - they’ll just move on to the next property.  You can avoid these bitter pills by practicing a little preventative medicine through competitive pricing right from the beginning.