Best Way to Price a Home For Sale

The best way to price a home for sale is not to list it really, really high and come down in price to meet a buyer.

That is conventional wisdom and that is how most people list their homes for sale.

But while I'm still in a 20 year career, which is going to be a 40, 50 year career, that is not the way we advise.

That is not the way we've had much success.

And I'm going to explain to you the rationale behind not doing it that way and which way to do it.

So as I alluded to, when you have a high price, you know that it's high.

The buyers, the brokers know that it's high and you know you're going to work your way down.

At that moment, you give all the buyers all the leverage and you end up making a deal at their price.

The two other ways to price a home is really price it at market value, which people know that it's fair.

You get good looks, they're still going to negotiate with you, or you price it just under fair market value.

Now that is the approach we like.

That is the approach that we talk to all of our clients about, and that is the price that generates the best results.

Because when you price it just under fair market value, everyone is like, oh my God, look at this home.

We got to go check it out.

Either something's wrong with it or they're motivated to sell.

Or some reason.

I don't care the reason that they come up with to come see it.

I just want to get us most eyeballs on the home as possible.

Because once we generate that type of interest and we have all the buyers in the market looking at your home, the market then dictates the price.

And we are sophisticated negotiators and we can balance 5, 10, 15 people at a time negotiating a home to get you the desired price.

Have a bidding more, let the market decide, and we will get higher than the price you would've set if you priced it high.

That is how we like to do it, and we're really passionate about doing it that way.