Setting a Price for Your Boston Area Home

When setting a price and trying to sell your Boston area home, conventional wisdom would have you think low-ball price. That thinking is not necessarily correct, however.

In residential real estate, the asking price is often as much about psychology as it is reality. Most home buyers don’t realize that setting an asking price is primarily a negotiating tactic. When you set a list price, you’re sending a signal to the market.

Selling your Boston Area Home means making sure you set the best price for it.Many sellers overestimate the worth of their Boston area home, and some agents will start with a price that is too high to avoid hard feelings. Others agents may start high just to get the seller’s business or, conversely, they’ll price too low for a quick sale and commission.

When pricing your Boston area home for sale, remember one key thing. No one cares what you paid for the home. It’s all about what it’s worth in today’s market.

Psychology of Pricing a Boston Area Home

No one claims to fully understand the psychology of pricing a Boston area home. But some common practices have emerged. For example, research has found that an exact asking price, such as $595,475, often indicates that the price is less negotiable than a round number, such as $600,000. Perhaps those using precise pricing show confidence in their price.

Additionally, pricing at $599,900 rather than $600,000 influences buying decisions on a subconscious level. The home “seems way cheaper.” And even when a Boston area home sells above asking price, the initial lower asking price can make buyers feel like they are getting a great deal. The goal is to make it stick in your head that you’re getting a bargain. It’s the way our brain looks at numbers.

Above all else, listen to your listing agent when he or she recommends a list price for your Boston area home. Your agent knows the market and what’s selling. You have about a month to six weeks when your home hits the market before it starts to get stale and fade from prospective homebuyer’s minds.

Also of Interest  Preparing Your Boston Area Home For Sale

More articles about selling your Boston area home can be found in the Boston Home Selling Tips section under Boston Real Estate Categories Categories to your right.

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