Pricing Your Home Right Still Matters
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 number of available residences. Data from the National Association of Realtors (NAR) shows 76% of homes sold within a month, and the average saw 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 set for your house sends a message 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 while. However, some purchasers may interpret a price drop as a red flag and ask why the price was reduced and what this indicates about the home.
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."
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 depending on market conditions increases 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:
Lean on a Professional’s Expertise to Price Your House Right
So why is an agent essential to finding the right price? Your local agent has the skill and insight necessary to find the market value of your home. They’ll use their expertise to determine a realistic listing price by assessing:
- The prices of recently sold homes
- The current market conditions
- The size and condition of your house
- The location of your house
Don't rely on guesswork when it comes to pricing your home at market value. Let's get together to make sure your home is priced correctly for today's market.