Thursday, May 1, 2014

Best home in neighborhood, highest list price...bad strategy?

Best home in neighborhood, highest list price...bad strategy?

Anyone who has ever sold a thing knows being competitively priced is important.  When selling a home most sellers are urged to price near the competition.

But what if your home is better than the others in the neighborhood?  Is it wrong to price well above the competition?

The short answer:  It is OK.

The discussion here is not about an over improved home but one that has the better view, truly upgraded components.

A short word about over improvements in a home.  Over improvements can be something as simple as adding a room (square footage) making the property have more gross living area than all of the surrounding properties.  Or it may be having a higher quality and finish than the neighborhood standard.

Care should be exercised when making additions or upgrades if you intend to sell soon.  Just like a pool...add it if you are going to use it and enjoy it - not with an expectation of a return on the investment.
However, if you are going to price your home higher than other "similar" homes in your neighborhood it is critical to tell potential buyers the WHY.

More importantly, it should live up to the billing