How Buyers Search for Homes
Even the best houses in the market still face the issue of getting a buyer’s attention. You need to show them that its better selection for them and that comes down to price because that’s how buyers search for homes. Today almost 90% of buyers are using internet to search for homes and the majority of agents used the internet to notify their clients of potential homes.
Let’s consider how a typical online home online home search is conducted and you will immediately see why it’s important to price your home correctly. The average homebuyer enters in just a few search criteria: price first, the number of bedrooms and bathrooms. From those three items, a typical MLS will typically display hundreds or maybe thousands of homes that meet the buyer’s needs. From that list, the buyer and the agent quickly go through to find the few homes that they want to visit in person.
Buyers tend to group homes in price brackets, which may be $10,000 or $25,000 increments. It varies. But the fact that these brackets exist and drives what buyers and their agents see is critical on pricing right.
When you price your home out of this optimum price bracket for your type of home, and buyers see a home in the next price bracket, which may be larger and have features and amenities in comparison to your home, you just help sell the other home. Effectively what you are doing is ensuring that people who search in a higher price bracket will find your home amongst the hundreds of homes that may be newer, bigger and perhaps will have more amenities. If your home does not compare in its price point you lose.
Keep in mind that the buyer and the buyer’s agent are eliminating choices immediately without ever setting foot in the home based only on online description that puts your home at disadvantage. By pricing your home in the next higher price bracket, your home could be eliminated without ever being seen by the right buyer. What’s worse is that the right buyer; those who are searching for homes just like yours and all that your house has to offer may not see your home in the search result since they are not searching at the higher price point. Those buyers won’t have the opportunity to make it one of the few they tour in person. To compete and win, your house has to offer the most amenities for the best possible price compared to competing seller’s houses.