Why Pricing Your Home Accurately Matters in St. George

Pricing your home right in St. GeorgeWhen you are ready to sell your home in St. George, pricing is key to a successful sale. Some sellers consider listing the home significantly under or above the market value, but we caution against that for a few reasons. Having a team of real estate professionals you can trust is essential for your successful home selling experience, and we can help. 

What are the risks of underpricing your home?

Underpricing your home—setting the listing price below its true market value—may seem like a great way to attract buyers quickly, but it comes with several risks. First of all, even if the strategy works and you do get a buyer quickly, you're not going to be getting the best possible deal. By underpricing your home, you risk leaving money on the table and potentially selling your home for less than its worth. This is probably going to result in lost profit potential that you could have otherwise gained by pricing your home accurately and attracting multiple competitive offers from interested buyers.

Underpricing your home is also likely to create the perception among buyers that there's something wrong with the property or that you're desperate to sell quickly. In other words, a home with a "too good to be true" price can actually turn away potential buyers who are skeptical or hesitant. 

Even in a best case scenario where the low list price leads to a bidding war and you get a well above listing price offer, you may run into issues with the appraisal. If you receive multiple offers on your underpriced home and accept one significantly above the listing price, the buyer's lender is likely going to require an appraisal to ensure the property's value supports the purchase price. If the appraisal comes in lower than the agreed-upon price, it can derail the sale or require renegotiation, leading to delays and uncertainty.

What are the risks of overpricing your home?

On the other hand, there are some risks to overpricing, too. While your buyers can of course offer below the list price for the more fair value of the home, it is usually not that simple. 

Overpricing your home can deter potential buyers and limit interest in the property. In St. George's competitive real estate market, buyers have access to extensive market data and are unlikely to consider homes that are priced significantly above comparable properties in the area. They may never even see your home's listing based on search parameters online. 

Homes that are overpriced also tend to languish on the market for extended periods, leading to stale listings and diminishing interest from buyers. The longer your home sits unsold, the more likely it is to become stigmatized, leading to further price reductions and difficulties attracting offers.

Overpricing your home can cause you to miss out on potential opportunities to sell quickly and capitalize on favorable market conditions. Pricing your home competitively is essential for attracting motivated buyers and achieving a timely sale.

How can I make sure my home is listed at the right price?

Pricing your home right depends on a few factors. We look at the condition of your home, it's size and features, and comparable properties in the area to help determine the fair market value of it. From there, we can discuss the details of your personal goals, like how fast you want to sell the home and the minimum price you want to get for it. We will help you combine all of this information to figure out the best list price for your home. 

One of the most important things you can do to successfully sell your home in St. George is choose a realtor who has local experience and expertise, and we offer just that. Contact us any time to learn more about how much your home in St. George is worth or selling your St. George home

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