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This story is brought to you by John Salkowski via the USA Herald Platform

What happens when you price your home improperly? You may think it can’t be that difficult to price a home, but it’s probably a little trickier than most of us believe. In part two of my Real Estate book the issue of how to properly price a home is explored. It turns out there are a lot of factors to consider when setting the price of a home and these are spelled out in some detail in this section. If a seller doesn’t get the price right, the home can take a long time to sell and even when it does sell there’s a good chance they may end up leaving money on the table.

Money Talks – It Really Does

Intuitively we tend to assume that setting the price of a home is pretty straightforward – you just take a look at what similar homes in your area are selling for and presto, you have your answer. If only things really were that simple. As I point out in the book:

“In today’s market, where demand is outpacing supply in many regions of the country, pricing a home is one of the biggest challenges real estate professionals face.”

 A good real estate agent is there to advise their client on the best pricing strategy. They know that pricing the home as high as possible is usually not the best strategy and they’re not afraid to share this knowledge with their client. In this section it’s made clear that the challenge for the agent is getting their clients onboard with this philosophy. It’s human nature to want the best deal and the advantage of using a real estate professional to sell your home is to make sure that happens.

So how does a professional real estate agent know what the right price to sell a home is? In the book I assert that each individual sale is a little bit different. A client’s individual situation has to be taken into account, as well as numerous market related factors. It’s a fine balancing act and getting it just right requires a real estate agent that’s good at developing strong relationships with their clients so that they can get the strategy right.

This section also points out the dangers of thinking that you can just lower your price later. This is strongly supported by available evidence, as studies have shown that lowering the price after a home’s been on the market for a while can have a negative impact on the final sale price. By doing this the seller creates a belief among potential buyers that they’re highly motivated to sell. The end result may be a final sale price that’s much lower than originally anticipated.