How to Price Your Palm Springs Area Home

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It’s very important, even in a hot market, to price your home appropriately. The key is pricing at or just below market value to give your home exposure to the highest possible number of buyers. To come up with your home’s market value, we look at both similar homes that are on the market now, and similar homes that have recently sold.

Our goal is to strategically price your home so that it comes up in either the first or second position on the MLS in terms of competitive pricing of similar homes on the market. Some sellers have this philosophy of testing the market, where they initially test an inflated price, just to see what happens. However, a home with a high price is actually detrimental. Today’s buyers are smart and if a home price is too inflated, they may think the seller is unrealistic or perhaps the price is too far above their ‘strike price’. They won’t even consider beginning negotiations. This will cause the home to sit on the market and other buyers will begin to wonder why it hasn’t sold, and the house could become stigmatized.

When a home is priced at market value, our stats from the National Association of Realtors shows that 60% of buyers looking in that price range will be exposed to the house. If you’re priced 10% above market value, only 30% of buyers will consider your home. If you’re priced 15% above market value, only 10% of potential buyers will see it. However, if you price 10% below market value, you open yourself up to 75% of buyers and if you price 15% below, that number increases to 90%.

If you’re pricing your home slightly below market value, you are setting yourself up for success by exposing your home to that largest pool of buyers potentially inviting multiple offers. In the end, the home will sell for what the market will bear and what a buyer will pay for it.

If you have any questions for us or are interested in finding out what an appropriate price for your home is, give me a call or send me an email. I would love to hear from you!