When selling a home, it can be tempting to start with a higher asking price and leave plenty of room for negotiation. But today’s buyers often aren’t browsing the market without a plan. Many are searching within specific price ranges based on their budget, available cash, preferred monthly payment and mortgage pre-approval.
That means a home priced too far above the market could miss some of the buyers most likely to purchase it.
Your initial listing price is an opportunity to create interest while your home is fresh on the market. When a property enters the market at a competitive price, it may attract more attention, showings and potential offers from qualified buyers.
An inflated price can have the opposite effect. Buyers may skip the property because it falls outside their search parameters or budget. If the home remains on the market and eventually requires a price reduction, some buyers may begin wondering why it hasn’t sold.
The goal isn’t simply to start with the highest possible asking price. It’s to work with your real estate professional to position the home competitively based on the local market while also understanding what today’s buyers may be able to afford.
A knowledgeable BankFirst Mortgage team member can help provide perspective on the financing side of the equation, including how interest rates, loan programs, down payments and other factors can affect a buyer’s potential monthly payment.
A relatively small difference in a home’s price can affect the amount a buyer needs to finance and, ultimately, the monthly mortgage payment.
While your real estate professional can help you evaluate comparable properties and determine an appropriate listing strategy, understanding current financing conditions can provide additional perspective on what buyers may be considering as they shop.
Depending on the loan program, market conditions and terms of the transaction, sellers may be able to offer concessions that help with certain buyer costs.
One option may be a seller-paid temporary rate buydown, which can reduce the buyer’s interest rate and monthly principal and interest payment for an initial period of the loan.
Seller concessions and temporary buydowns are subject to loan program requirements and other limitations, so buyers and sellers should discuss available options with their mortgage and real estate professionals.
Some sellers may choose to obtain an appraisal before listing their home. While a pre-listing appraisal does not guarantee the value determined by a future appraisal, it can provide another piece of information as you and your real estate professional develop a pricing strategy.
It may also help identify potential valuation questions before an offer is accepted.
Real estate markets can change quickly. New homes may be listed, competing properties may reduce their prices and other homes may go under contract.
Pay attention to comparable properties in your area and work closely with your real estate professional to understand how those changes could affect your strategy.
The first days and weeks after a home is listed can be important. That’s when a new property may receive increased attention from buyers, real estate agents and online home searches.
A competitive price can help turn that initial attention into showings and potential offers. Starting too high may mean some qualified buyers move on to other homes that better fit their budgets.
Selling your home successfully doesn’t necessarily mean starting with the highest possible number. A thoughtful pricing strategy can help your home reach the right buyers at the right time.
And when you’re ready for your next move, BankFirst Mortgage is here to help you understand your financing options and prepare for what comes next.
Ready to talk about your next home? Connect with a BankFirst Mortgage professional to explore your financing options.
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