When choosing a listing price for your home, it’s important to be realistic. Always obtain as much objective information as possible about your home’s value and consider your personal goals for the transaction. Do you need the money by a certain date? Are you willing to wait longer to get the price you want? Timing can often play an important role in price-setting.
Why Timing Matters
If you find a new home faster than you sell your home, you may find yourself temporarily paying two mortgages. For most people, this becomes uncomfortable fairly quickly and cannot be sustained for a long period of time. In this case, you may consider lowering your price for a faster sale. Some people find themselves in a position where cash is needed quickly, and this can also prompt a lower list price, in the hopes of closing a quick sale. In these situations, it is important to keep ego out of the way and deal with the realities of two payments per month. It doesn’t take long to eat up your reserves in such situations.
Alternatively, you may be willing to be patient in order to get the specific price you want for your home. Keep in mind that the longer your house sits on the market, the more buyer interest can wane. After several months have passed, you will almost certainly feel pressure to lower your asking price.
If you choose to use a real estate agent, do not allow your agent to pressure you into lowering your price too soon. Ask for justifications as to why. You may also ask the question, “If you thought this was the price, why did we start so high in the first place” and see how they answer. Make sure an agent has your best interests are heart. Remain objective and realistic, and get third-party objective information whenever possible. Your agent has expertise, but he or she is also financially motivated, since the agent only gets paid when they complete the sale. Ultimately, it is your decision to lower your asking price, and you should feel comfortable doing so. Our HomeSmart Value Report will provide you with enough objective information to make an educated decision regarding property values.