Asking Price Accuracy

Asking Price Accuracy

If you are in the market to sell your Fort Collins, CO home, the price you initially put out there is critical to the success of your sale. Not only does this set the stage for where people will find your home in a search, it also tells them a little bit about your strategy and position with the listing.

One of our least favorite things to hear, as real estate professionals is the old adage "let's aim high and we can always come down". This strategy is not only flawed, but more often than not it provides for a lesser closing price than if you had set the price appropriately up front. Let's look at a couple other strategies that can help get your home sold at the price you want.

First of all, stay flexible and use round numbers. If you have seen a price tag with something like "$7.39", typically a red flag goes up and the person selling is being a little odd. If you are very specific with your price, it indicates that you are unwilling to budge on price and there's a better than normal chance of the "deal" having challenges along the way. Using a more rounded number indicates you are confident in the price and are likely a more reasonable person to work with.

Believe it or not, that old number "9" is still a legitimate factor in how our brains perceive value. An asking price of $499,999 truly is perceived as a better deal than $500,000. Even in the home ends up selling at a higher amount, the buyers still feel they got a deal since the initial asking price was lower. This continues to baffle me since I would have assumed we had figured this out by now, but our brains are a little slow on the uptake!

Lastly, and on the flip side of where we started, it is important to not go too LOW with your initial asking price. Granted, you may generate a bunch of interest in the property, but you may also attract those folks that can pay cash and waive the inspections just to get to closing sooner. While you were hoping for a competitive situation, all you will end up with is a lower closing price.

Setting the initial asking price for your home is a big decision.  Asking the advice of a real estate professional at C3 Real Estate Solutions is a great place to start.  We can gather information about the local market and work with you to decide on the best strategy to get your home sold in the least amount of time.

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