It is obvious, when you make a move, you want to sell your home for the highest price possible.
That might be why many homeowners are eager to list in today’s sellers’ market. After all, with record-low inventory and high buyer demand, many homes are selling for more than asking price. Data from the National Association of Realtors (NAR) shows 46% of homes are selling above list price today.
But even in a market like we have now, working with an agent to set the right asking price is critical, as pricing it too high or too low could have a negative impact on your final sale.
In a Sellers’ Market, pricing your House right is Crucial
The price you set for your home sends a message to potential buyers. Price it too low and you might raise questions about your home’s condition or lead buyers to assume something is wrong with the property. Not to mention, you could leave money on the table, which decreases your future buying power if you undervalue your home.
On the other hand, price it too high and you run the risk of deterring buyers. When that happens, you may have to do a price drop to try to re-ignite interest in your house when it sits on the market for a while. But be aware that a price drop can be seen as a red flag for some buyers who will wonder why the price was reduced and what that means about the home.
In other words, think of pricing your home as a target. Your goal is to aim directly for the center – not too high, not too low, but right at market value. Pricing your home fairly based on market conditions increases the chance you’ll have more buyers who are interested in purchasing it. That makes it more likely you’ll see a bidding war, too. And when a bidding war happens, you’ll likely get an even higher final sale price. Plus, when homes are priced right, they tend to sell quickly.
To get a look into the potential downsides of over or underpricing your home and the perks that come with pricing it at market value, see the chart below:
To price your house right, lean on a professional’s expertise
It is important to lean on an expert real estate advisor when you’re ready to move because they are several factors that go into pricing your home and balancing them is key.
A local real estate advisor is knowledgeable about:
· The value of homes in your neighborhood and nearby
· The current demand for homes in today’s market
· The condition of your home and how it affects the value
· What you should do to your home before listing
A real estate professional will balance these factors to make sure the price of your home makes the best first impression and gives you the greatest return on your investment in the end.
Even in a sellers’ market, pricing your home right is critical. Don’t rely on guesswork. Work with a trusted real estate advisor to make sure your home is perfectly priced, like us, Broker Direct Realty Group.