In some situations, it might make sense to actually increase the list price to get buyers’ attention, according to a new article at realtor.com®. The article provides several scenarios where increasing the asking price may be justified on a home for sale, including:
Market conditions have changed since the home was first listed.
When comparable properties start selling for more than the list price, raising a home’s price may actually garner greater buyer interest, says Jim Paulson, owner-broker at Progressive Realty Corporation in Boise, Idaho. “Typically, the time to raise the price is when the laws of economics with client demand warrant it—that is, if prices are rising quickly and inventory is dropping,” Paulson says.
The home boasts more than the competition.
If the house features amenities the competitors’ don’t have, a price increase may be warranted. Buyers will compare similar homes and they may be willing to pay more for one with extra features, says Ramonita Acevedo, a real estate pro with Coldwell Banker Residential Real Estate in Miramar, Fla. “Often a price increase could be justified in that case, because two [otherwise] identical three-bedroom homes may sell at different price points because one has something that gives it more value,” she says.
You want to generate more interest by relisting.
If the home has been taken off the market and then listed at a higher price, you may attract some buyers who hadn’t seen the home previously. “You don’t even have to de-list it; you can just edit it,” Paulson says. “Because in our automated world, if you like my listing and you favorited it, and I change that price point by a dollar, the system will flag it and let you know there’s been a change in the listing you liked. It gives your house that top-of-mind awareness to buyers.”
Source: “When They Go Low, Should You Go High? 6 Times to Increase Your Asking Price,” realtor.com® (Jan. 9, 2018)
Source: NAR Daily News