While this isn't the frenetic market of the 'unicorn' years, properties that are priced correctly are nonetheless selling swiftly and receiving several offers. This is due to the low amount of available residences. According to the National Association of REALTORS® (NAR), 76% of properties sold within a month, with an average of 3.5 offers in June.
You must rely on an agent to put yourself up for such benefits. Only an agent has the knowledge required to determine the appropriate asking price for your home. What is at stake if that pricing is incorrect for today's market value?
The price you choose for your home communicates to potential buyers.
If you price it too low, you may raise concerns about the quality 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, reducing your future purchasing power.
On the other side, if you overprice it, you risk discouraging purchasers from even touring it in the first place. When this happens, you may need to lower your asking price to re-ignite interest in your home after it has been on the market for a time. However, some consumers may see a price drop as a red flag and ask why the price was reduced and what it indicates.
A recent article from NerdWallet sums it up like this:
“Your house’s market debut is your first chance to attract a buyer and it’s important to get the pricing right. If your home is overpriced, you run the risk of buyers not seeing the listing . . . But price your house too low and you could end up leaving some serious money on the table. A bargain-basement price could also turn some buyers away, as they may wonder if there are any underlying problems with the house.”
Consider your home's price as an objective. Your goal is to strive for the center - not too high, not too low, but just at market value.
Pricing your home fairly depending on market conditions raises the likelihood that you'll have more buyers interested in buying it. This increases the likelihood that you will receive many offers. Furthermore, when homes are priced correctly, they sell rapidly
The graphic below provides a high-level overview of the potential drawbacks of over or underpricing your home, as well as the benefits of pricing it at market value:
Use a Professional's Advice to Price Your Home Properly
So, why is an agent necessary in determining the best price? Your local real estate agent has the knowledge and experience required to determine the market value of your home. They will analyze the following factors to determine a reasonable listing price:
- Home prices that have recently sold
- The current market situation
- Your house's size and condition
- Your house's location
Conclusion: Don't rely on guessing when it comes to pricing your home at market value. Work with a reputable real estate agent to ensure that your home is priced appropriately for today's market.
Credit: Keepingcurrentmatters
Nerdwallet
