When the objective is selling your Houston home for the highest price (which it always is), establishing the asking price is the second of the two most crucial decisions you will make. Many homeowners reason that setting the original asking price “at the max” makes the most sense. They see that strategy as a way of controlling the process since it provides room for negotiations. Because this early decision is made before the Houston home has even entered the market, it doesn’t yet feel like there is any time pressure. If the high figure doesn’t attract buyers, lowering the asking price will solve the problem.
That may sound logical, but it’s highly inadvisable. When a seller decides to price above comparable properties, the predictable result is to curtail the property’s “visibility”—the number of buyers who will be motivated to look more closely. That significantly lowers the likelihood of drawing a reasonable offer—or any offer. It leaves the seller little choice but to lower the asking price—and properties showing price reductions don’t fetch top dollar. That process is known as “chasing the market down”—a phrase that accurately captures the vicious cycle that can develop when a home goes too long with no takers. As the days-on-market accumulate, it makes a property seem as if something must be wrong with it—even if the only thing wrong was the original asking price.
As noted above, pricing is the second crucial decision. It’s preceded by the first: selecting the best Houston Realtor® to manage the selling process. That Realtor should have experience in compiling the research that accurately pegs how comparable Houston listings are currently faring—which includes taking into account the special features that give your own Houston property unique marketing advantages.
When a newly listed property quickly attracts attention, it maximizes the possibility that a bidding competition will develop—the polar opposite of “chasing the market down.” If it is time to sell your own Houston home, I hope you’ll call me to discuss all the ways we can make that happen! Rinnovare Realty, LLC (832) 445-4957. www.rinnovarerealty.com