How to Price Your Home for Sale in the Red Deer AB Market

One of the most challenging things facing homeowners who are about to put their home on the market is how to determine the listing price. This is especially true for residents and real estate investors in Central Alberta. The economy and real estate landscape of Red Deer and the surrounding area are among the most unique in the country, and thus your pricing strategy must be customized accordingly. Today, we help you with this process by nipping a few myths in the bud and guiding you in the right direction.

4 Tips to Pricing Your Home When Selling in the Red Deer Alberta Market

1. Overpricing to Leave Room for Negotiation Does Not Work

The biggest myth in setting a listing bid is that over-inflating the price will work in your favor. The mentality, is that if you start very high you leave room to negotiate and ultimately land on the price you found most acceptable in the first place. Theoretically the buyer thinks that they drove a hard bargain, and are more likely to buy your home now that they can claim a victorious negotiation. Sorry, but this isn’t Pawn Stars. Buyers in Central Alberta are smart. They can sniff an overinflated listing price a mile away and instead of making that initial contact they and their agent will move on to a similar property with a more realistic price tag.

In addition, the inflated price will keep your home on the market much longer. While you may have the patience to wait until someone bites, the longer your home sits on the market the more that buyers become suspicious. They begin to think that something is wrong with the property. Remember, in the Red Deer buyer’s market perception is reality.

2. Don’t Undervalue Your Home Because of Economic Concerns

There are some sellers in Central Alberta that panic during economic downturns. Their fear of a slow economy has them making hasty decisions, undervaluing their home. The thought process is twofold. For one, they are making the assumption that the economy won’t bounce back, real estate market included. In addition, they think setting a low listing price will equal a quick sale and prevent them from losing additional wealth should the market continue to fall. Once again we have a misinformed point of view.

For starters, this is Red Deer Central Alberta we’re talking about. The long standing economic capital of Canada. The energy-rich sector will bounce back strong and along with it the real estate market. Setting too low a price will make you vulnerable to hungry outside investors looking to capitalize on your fear, knowing that prices will again return to form. Don’t let the panic get to you and don’t fall prey by undervaluing your property.

Secondly, setting too low a price does not automatically increase interest and offers. Remember our statement regarding perception is reality above? Well that applies here as well. Undervaluing your home in the listing price will make many agents and buyers cautious. They assume that if you’re unloading your property at a relative steal then something must be amiss. Your property will be passed over, receiving fewer views and a lesser opportunity to sell. Simply put, set your property at its true value.

3. No Need to Renovate if a Renovation is Not Needed

Many property owners end up dumping additional funds into renovations before listing their home, thinking that this will allow them to ask for a proportionately higher price. This can be true, but it is not always so. Only renovate where needed. If a room in a home is in obvious disrepair or a needs functional makeover then it certainly makes sense and can increase your asking price. But if you are planning renovations to simply enhance aesthetics you may be making a costly mistake. Just because your tastes dictate the necessity does not mean that prospective buyers would have wanted the same. You may end up eating an additional expense that does not allow you to actually raise the price of your home.

4. Selling Your Home w/a REALTOR® Will Get You Closest to Your Listing Price

Some people think that selling their home on their own will bring them a greater overall return on their listing price. This is not true. When you secure the services of a REALTOR® you avoid a hoard of expenses incurred by going at it alone. There is significant time and expense involved in listing your home on online/offline resources, marketing the property, negotiating with prospective buyers, writing/reviewing/amending contracts, and processing lone applications and inspections. A REALTOR® alleviates all of this. In addition, your property will be placed in view of more prospective buyers when you gain access to a real estate marketing team’s network. On top of the views, you’re far more likely to receive an offer closer to your listing price when a professional REALTOR® is at your side. Simply put, the opportunity cost of not using a REALTOR® far outweighs the results of any attempt to list your home on your own.

The Dusty Smith Team has been selling homes within 1 to 2% of listing price. Call the Dusty Smith Team today to ask the right questions about selling your home.