When setting a price and trying to sell your Long Island NY 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.
Many sellers overestimate the worth of their Long Island NY 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 Long Island NY 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 Long Island NY Home
No one claims to fully understand the psychology of pricing a Long Island NY 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 Long Island NY 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 Long Island NY 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.
More articles about selling your Long Island NY home can be found in the Long Island NY Home Selling Tips section under Long Island NY Real Estate Categories Categories to your right.