How High/Low Should You Price Your Home?
Buyer psychology plays a big role in how homes should be priced.
From Realtor.com comes an interesting look at the always stressful and often difficult decision of how much to ask for your home. Do you price it lower than market value and hope to get interest from multiple parties that could start a bidding war, or do you price it higher and hope that someone thinks they’re getting the best house on the block?
The answer, according to a study published in the Journal of Economic Behavior & Organization is to price it 10 to 20 percent higher than market value. As Relator.com explains, the study’s authors looked at the sales of 200,000 homes and found that higher priced homes, in most cases, ended up selling for even more.