Pricing Is Crucial Even in a Sellers’ Market
When you decide to make a move, you want to get the best price possible. That could explain why so many homeowners are eager to list in today's sellers’ market. With record-low inventory and high buyer demand, many homes are selling for more than their asking price. According to the National Association of Realtors (NAR), 46 percent of homes are currently selling above list price.
Even in a hot market like this one, working with an agent to set the right asking price is critical, as pricing it too high or too low can hurt your final sale. This is why.
Pricing Your House Right Is Crucial Even in a Sellers’ Market
The price you set for your home communicates a message to potential buyers. If you price it too low, you may raise concerns about the condition of your home or lead buyers to believe something is wrong with it. Not to mention that if you undervalue your home, you may be leaving money on the table, which reduces your future purchasing power.
On the other hand, if you price it too high, you risk discouraging buyers. When this happens, you may need to lower your asking price in order to re-ignite interest in your home after it has been on the market for a while. However, be aware that a price reduction can be interpreted as a red flag by some buyers, who will wonder why the price was reduced and what this means for the home.
In other words, consider your home's price as a target. Your goal is to aim for the center – not too high, not too low, but exactly at market value. Pricing your home fairly based on market conditions increases the likelihood that you'll have more buyers interested in buying it. This increases the possibility of a bidding war. And if there is a bidding war, you will almost certainly get a higher final sale price. Furthermore, when homes are priced correctly, they tend to sell quickly.
To get a look into the potential downsides of over or underpricing your house and the perks that come with pricing it at market value, see the chart below:
Lean on a Professional’s Expertise To Price Your House Right
There are several factors that go into pricing your home, and the key is to balance them. That is why, when you are ready to relocate, you should consult with an expert real estate advisor. A local real estate advisor is knowledgeable in the following areas:
- The value of homes in your neighborhood
- The current demand for houses in today’s market
- The condition of your house and how it affects the value
A real estate professional will balance these factors to ensure that the price of your home makes the best first impression and provides the best return on your investment in the long run.
Even in a seller's market, getting the correct price for your home is crucial. Don't rely on hunches. Let's get together to make sure your home is priced correctly.