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Location vs. list price - Which is more important to your home sale?

Location or list price - What's more important to sell your home?“Location, Location, Location.” You’ve probably heard this phrase more than once about real estate. Conventional wisdom says that location is the most important factor in selling a home—but is it really? The location of your home can’t be changed, so if your property isn’t located in a hot neighborhood, what can you do?

That’s when you move to the next most important factor—the beginning list price.

Research shows that half of prospective buyers see your home in the first week, either online or in person. If they pass on your property during the first week, most likely you’ve already lost them.

You may be thinking “But I know my home is worth a high list price!” Ask yourself: is that what your home is really worth or only what it’s worth to you? The true value of a home lies in what the market is willing to pay for it, and if you start too high you could put your listing in jeopardy and risk selling for lower than you wanted.

We see it too often: home sellers will set their beginning price too high, get no traction after a few weeks, and then reduce the price later. At this point, though, the damage may already be done. Instead of pricing competitively from the start, sellers have to chase the market lower and lower to get offers, often ones that are below even the reduced list price.

From the buyer’s perspective, it makes sense. If they didn’t want the home at the initial price, when they see it lowered, they think “What’s wrong with this home that they reduced the price?”

If we could give our home sellers just one piece of advice—and we give them lots more than that!—it would be to price right. How do you know if you’re priced right? Consider this thought experiment:

If an offer comes in on your property, an offer that you consider “low”, is it so “low” that you would instead choose to keep the home? Every home seller has a dream price, but if you don’t get an offer that matches your dream, what’s the lowest offer you could accept and still be happy? Your beginning list price should approach that line—high enough for you not to have regrets at the end of the day, but low enough to attract the most buyers. 

There’s strategy in that too—the more competitively you price your home, the more likely you are to get multiple offers. Combine that with Faira’s state-of-the-art offer platform and you can drive the price even higher than you wanted to start at!

Here’s the bottom line: Yes, location is the most important factor in your home sale. But the list price is the most important actionable item—the only one that you have control over. If your home is priced competitively from the beginning, it has the highest chance to sell no matter what the location is. Start low, get multiple bids and sell for the best price—it’s that easy.

Learn more about selling with Faira

Christopher Ellis

Written by Christopher Ellis

Christopher Ellis is a Marketing Associate at Faira, joining the team after spending two years in the Operations department. A graduate of the University of Puget Sound, Christopher is passionate about technology, market research, and real estate.

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