Should You Price Your Home High When You Sell

Q: We’re in the process of selling our home. I know we’re gonna have to negotiate so I figure we should set the price high to give us some room to haggle. Our realtor wants us to put our home on the market at a lower price. What do you think? Raymond, Plainfield, NJ

A: The value of a house is what someone is willing to pay for it, not how much you think it’s worth or what you want to sell it for. Unfortunately, many people mistakenly believe that if they try to sell their home for an inflated price it will help them get a higher price—the opposite is true. As the asking price increases above fair market value, sellers lose a greater share of prospective buyers. Pricing a home to sell at fair market value creates a sense of urgency and promotes buyer and agent interest in the property. It also sets the stage for multiple purchase offers during the first 30 days of marketing which puts the seller in control of price negotiations which results in purchase offers coming in higher. Pricing a property to sell at fair market value rather than above market value results in a higher home selling price in a shorter period of time. Thanks for your question, Raymond.

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