Most people hear “Price is Right” and think of Bob Barker. Turns out that game shows and real estate have some things in common.
It’s no secret that listing your home at the right price is key to a successful and timely sale. So what’s the strategy behind selling your home for top dollar? There are three ways you can price your home, and each strategy comes with it’s own set of risks and potential rewards. The best strategy for you will depend on your timeline and your willingness to play the home pricing game.
Pricing Above Market Value:
We know you don’t want to miss an opportunity to get the best price if there’s a buyer willing to pay up for your property. If you own a rare property or a home that has a very unique feature, there may be a select group of buyers willing to pay up for the chance to own it. Just remember, those first few days on the market are crucial for generating buzz and interest in your home. Coming on too strong with your list price could mean a wasted window of opportunity.
Here are some signs you might be priced too high:
- You get less than 5 showings during your first week on the market
- You’ve been on the market for three weeks without an offer
Pricing above market value is risky, but as long as you don’t go too extreme, it can pay off. Just be prepared to sit on the market a little longer, and know that you might have to come down in price if buyers aren’t showing interest in your home. Staying overpriced for too long can make your listing look stale, and won’t help you get top dollar in the long run.
Pricing Below Market Value:
Call us crazy, but pricing your home below what it’s worth can actually make you more money at the end of the day. The inventory of Chicago homes for sale is very low right now, so buyers are already facing a very competitive market climate. Throw in a good deal on top of that, and you’re going to bring multiple offers to the table. Buyers in bidding wars often bid above the list price to seal the deal. Exhibit A: one of our agents recently helped his client outbid eight other buyers to score their dream Lincoln Park loft condo... Their winning bid was $25,000 over ask price!
We’re crossing our fingers that this happens to you too, but be careful- if you wouldn’t be willing to accept an all-cash offer at the list price you’re thinking of, then that price is too low.
How you know you’re priced under market value:
- You get 10+ showings in the first week on the market
- You get at least one offer and are under contract in less than a week
Pricing below market value can be risky, but if you need to sell fast or if the market has appreciated significantly since you bought your place, it could be worth your while.
Pricing At Market Value
This strategy’s for the homeowners who want to play the game safe. If you price your home at market value, you minimize your chances of sitting on the market for a while, or worse, selling your home for less than it’s worth. Homes in Chicago that are priced around market value typically sell within 2-5% of asking price, depending on the neighborhood.
How you know you’re priced at market value:
- You get 5-10 showings per week
- You get an offer under contract within 1-2 weeks of listing your hom
Pricing your home right takes a lot of careful thinking. It’s more than just a numbers game... It’s a timing game, too. Don’t worry, you don’t have to strategize alone- real estate agents are trained to help you determine your home’s current market value and recommend a pricing strategy that will bring you the sale price you want. If you want to talk numbers, drop us a line. Happy home selling!