By Vanessa Saunders, MBA, MIMC , Broker Owner, Global Property Systems Real Estate.

I took a listing last weekend for a lovely three bedroom home in the Mid-Hudson Valley. It had been on the market for six months and had little interest. There was nothing wrong with the house, it was up to date, tastefully done and in a desirable location. What was wrong was the price.

The agent who listed it before me knowingly priced it $100,000 over its market value. The owner told me his reasoning was that “The market right now is really hot! Price it high and it will sell.”

It didn’t. As a matter of fact, it didn’t get one showing in six months. Other agents in the area knew how overpriced it was, and either didn’t bother suggesting it to their buyers, or showed their clients how much it was overpriced compared to similar properties.

Pricing a house can be tricky, especially if it is unusual (in either a bad or good way) or if there are few similar homes to compare it to. But the strategy for pricing is very simple. Homes on the market are in a kind of competition for attention. If a house has the same size, same amenities in a similar neighborhood at a similar price, it won’t be as likely to catch a buyer agent’s eye when it comes on the market.

The chart below shows the impact of price on visibility to buyers. A house that is priced 15% over market will attract only 10% of potential buyers. A house priced 10% below market will attract the interest of 75% of potential buyers.

The best pricing strategy is clear. To sell your home quickly and for the best possible price, you should make your home stand out by pricing it competitively right from the start.

All our agents are certified as Pricing Strategy Advisors (PSAs) and know how to set the correct value for your property. A Comparative Market Analysis is the best method available to home sellers to learn their home's current value. This in-depth analysis ascertains a home's worth in today's market based on recent sales and pricing trends. Setting your price slightly below market value at the start of the listing will increase the visibility of your listing and drive more buyers your way.

This strategy actually increases the number of buyers who will see your home in their search process. Why? When potential buyers look at your listing and see a great price for a fantastic home, they’re likely to want to take a closer look. This means more buyers are going to be excited about your house and more apt to make an offer.

When this happens, you’re more likely to set up a scenario with multiple offers, potential bidding wars, and the ability to drive a higher final sale price.

To find out more about selling your home, or for more information, CONTACT US.