Setting the Right Price

You want to get the most money out of your house, but what's the best approach? Most would say, "Start high, and lower if needed." Not so! Learn more about the three general pricing strategies below.

1. Too High
   
   Starting too high is the worst way to sell your house in any market. Why? Your home gets its greatest exposure to serious buyers right when it goes on the market. If it's overpriced, the "good" buyers pass it up, and interest fades.
   
   Even lowering the price to market value later won't spark much interest, that is, unless the price is lowered below market value—a situation most sellers don't readily agree to. After so many weeks on the market, buyers worry there must be something wrong with the house and stay away.
   
   Satterfield Realty's agents respect a seller's right to set the asking price, but they will discourage overpricing. It simply squanders away your most valuable marketing time. A little "negotiating room" is okay, but remember the higher you go, the more buyers you deter.
   
   
2. Market Value
   
   Setting your asking price at market value (or 1 to 2 percent below market value) is the most effective approach to earn the best profit in the shortest amount of time. Showings begin almost immediately for a home that's priced right, and offers are quick to follow.
   
   To help you determine market value, Satterfield Realty conducts preliminary and secondary research. In our preliminary research, we pull comparable properties that have recently sold and that are currently on the market (the competition), known as a Comparable Market Analysis. We present this to you to provide a general price range for your home.
   
   In our secondary research, we tour your home, looking closely at condition, layout, and features to more precisely determine the market value. Armed with this research, you can feel confident you are "setting the right price."
   
   
3. Too Low
   
   Price your home low to sell it fast or to generate multiple offers. This is a popular technique in markets saturated with buyers. An agent sets up an open house, confident that multiple offers will come in. Buyers know they are in competition with each other, so they make their best offer up front, often exceeding the sellers' expectations.
   
   Satterfield Realty does not suggest setting a low asking price in the Pocatello market unless you want to sell fast. There are too few buyers to create the competitive arena that may get you an above-market offer. You are more likely to receive offers at or below market value.