San Diego Home Sellers: When Increasing Your Asking Price Makes Sense

Although it might seem counter-intuitive, there are some scenarios in which it makes sense to raise your asking price if you are not getting offers currently on your San Diego home. Pricing your home correctly is complicated and you don’t want to alienate buyers from the beginning by pricing your home too high. However, you may get renewed buyer interest in the following situations if you raise your asking price.

Market Conditions Have Changed Since Your Listing

If you start to notice that San Diego properties comparable to yours start selling for more than asking listing price, it may be time to raise your price as well. Buyers may be attracted to a house that is priced a bit above other houses thinking it is more desirable.

In addition, San Diego home buyers frequently shop in price categories, so bumping your house up to the next category could attract a whole new demographic of buyers. Real estate experts say if you are right at the border of a psychological break point such as $300K, pricing your home at $301K versus $299K will reach an entirely new segment of buyers who are looking for houses between $300K to $350K rather than only the buyers looking for homes under $300K.

Your San Diego House Has Special Features

You may have undervalued your San Diego home when you first listed it. Keep an eye out for new listings and see if they have the same features as your home. If your home has more to offer than others, such as a pool, you may be justified in increasing your list price. Buyers are often willing to pay more for homes that have features that comparable homes do not.

You Did Major Upgrades After Listing Your Home

If you listed your San Diego home for sale and then decided to do major renovations, this could be a great reason to increase your asking price. However, be aware of what renovations add the most value.

Kitchen and bathroom upgrades tend to add the most value to a home. Some renovations, like garage conversions, may actually turn off buyers. Real estate experts say to remember that you don’t always get your money back on renovations when you sell so plan carefully.

Your Appraisal is Higher than Your List Price

Typically, a buyer will pay for an appraisal in order to get a mortgage from a bank. However, a seller can also get an appraisal as well. While this should ideally be done before you list your home, if you find out later that the appraisal is higher than your list price, you can use the report to justify increasing your price. Real estate pros advise that changes should be made to reflect current market value rather than selling for less and losing money.

Raising your asking price may be the solution to renewed interest in your San Diego home sale. Ultimately, you want to be sure your house is still priced fairly and that you can justify the increase.

Potential San Diego home buyers may have questions if they see your home price is raised after its initial listing. However, you should be able to satisfy their concerns by relying on the most recent data.