UNDERSTANDING PRICE TO INTEREST RATIO
Pricing your home above market value limits the number of potential buyers who will look at the property. Conversely, pricing below market value can increase the number of potential buyers who know about your property.
Understanding the price to interest ratio is crucial to optimizing the time your property spends listed before it is sold. Price too high and you may not get attract enough people. You won’t get a realistic idea of the available pool of buyers. Pricing below market value helps draw out perspective buyers. You can find people who were unaware of the significant value they can get by spending just a little more. But pricing too low may also undervalue your property.
YOU MAY NEED HELP
Of course all markets are different. And current local events also impact the ratio of interest to price. The situation in your neighborhood may dictate a specific pricing strategy. High demand and a low number of available properties for sale may increase the ratio of interest towards property priced above market value.
On the other hand, your personal circumstances may make it beneficial to price below market value. The increased number of potential buyers you get from pricing lower usually translates to a quicker time to sale. Sometimes it results in more offers being made and more competition between buyers. A professional realtor will have more information on current trends for your property. Tapping a professional for assistance in pricing often results in getting a better sale price, or shorter time to sell.
All of this revolves around your property’s market value. Market Value itself is a moving target affected by a number of variables. Click here to view an article from Investopedia on how Market Value determination.
Enlist Sound Investments, Inc. as your real estate agency, we will explain pricing options and the possible alternatives available. We will explain how the price to interest ratio affects selling in you area. We’ll also suggest which options are the most likely to meet your selling goals. CONTACT US now.