How to Price Your Home to Sell in Utah (And Why Overpricing Backfires)
/Pricing is the single most important thing we will do together before your home goes on the market. And I want to be direct about my philosophy: I believe in pricing a home at its market value from day one.
Some agents will tell you to start high so you have room to negotiate. I do not think that strategy serves sellers well. Here is why.
The Cost of Overpricing
A well-priced home attracts buyers quickly. An overpriced home does not.
Buyers who are actively searching in your price range will know within days that your home is priced too high. They will wait. They will watch the listing sit. And when it becomes old and stale, they will come in with low offers because they know you are motivated.
Studies consistently show that homes priced too high at the outset take longer to sell and ultimately sell for less than they would have if priced correctly from the beginning. Old and stale is exactly what you want to avoid. A listing that has been sitting for 60 days carries a stigma with buyers. They wonder what is wrong with it.
The first two weeks on the market are the most valuable time you have. Do not spend them on the wrong price.
How I Determine Market Value
I use a Comparative Market Analysis, or CMA, to establish the right price for your home. This is a detailed look at recent sales of comparable homes in your neighborhood, adjusted for differences in size, condition, location, and features.
I also factor in:
Current inventory levels in your area
How quickly homes are moving right now
Any unique characteristics of your property
The direction the market is trending
The goal is to find the price that reflects what buyers in today's market are actually paying for homes like yours. That number is your market value, and that is where we should list.
What About the Zestimate?
Online valuation tools like Zillow's Zestimate can give you a rough ballpark, but they do not account for the condition of your specific home, recent improvements, or the nuances of your immediate neighborhood.
I have seen Zestimates that were $50,000 high and $50,000 low on the same block. They are generated by algorithms that have never been inside your home. A proper CMA from a local agent who has actually seen comparable properties in your area is far more reliable.
What Happens When the Market Responds
Once you are listed, the market will tell us quickly whether the price is right. Here is how to read the activity:
Lots of showings and offers in the first week or two mean the price is right and the home is showing well. This is what we are aiming for.
Showings but no offers usually mean buyers are interested, but something is preventing them from committing. It could be price, condition, or a specific feature. We look at the feedback and identify it.
Few or no showings in the first two weeks almost always point to a pricing issue. Buyers search by price range. If your home is priced above comparable properties, the right buyers may not even find your listing.
Price is not the only thing that drives results, but it is the most powerful lever we have. Getting it right from the start is the best thing you can do for your outcome.
Ready to Talk Numbers?
If you are thinking about selling in the Salt Lake Valley, I would be glad to put together a CMA for your home. There is no obligation, and it will give you a clear, data-backed picture of where your home stands in today's market. Reach me at the link below.
And for the full picture of the selling process from start to finish, download the guide below.
Melissa Brownell is an Associate Broker with Plumb & Company Realtors in Salt Lake City, Utah, with 15 years of experience helping buyers and sellers throughout the Salt Lake Valley.