Do You Know If You Are Pricing Your House Right?

When you are ready to move to a new location and list your house, you want to sell your house for the highest price possible right? Of course! That might be why many homeowners are eager to list in today’s sellers’ market. We discussed already how there is record-low inventory and a very high buyer demand, resulting in many homes selling for much more than asking price.

Data from the National Association of Realtors (NAR) shows 46% of homes are selling above list price today.

Don't get too excited though, if you don't price your house right to start it could have a negative impact on your final sale. 

The price you choose to list your home at sends a message to potential buyers, so pay close attention. If you price your home too low, you could raise questions and red flags about your home’s condition or lead buyers to assume something is wrong with the property. (Not good) Not only will you raise flags but you are also hurting yourself by leaving potential money on the table and decreasing your future buying power for yourself. 

On the contrary,  if you list your home too high, you run the risk of moving potential buyers away. If that's the case, you may have to adjust your price and to try to recliam interest. If you do end up having to drop the price, be aware that this can be seen as another red flag for some buyers who will wonder why the price was reduced and what that means about the home...a big lose lose if not done right. 

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.

-KKM

Work with a trusted real estate advisor to help price your home based on market conditions, this will increase the chance of more buyers showing interest in it.

When we say market conditions take into considerationt he following: 

• 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

This also makes it more likely to see a bidding war based on todays statistcs and conditions. (Hell yeah more $$!) We told you before and we will say it again, when a bidding war happens, chances are you will see more money come in the final sale than you listed it for.

Let's recap:

Home priced right + attracting good first impression in the market = home to sell quickly with the greatest return on investment

Simple math!

Bottom line is, don’t rely on guesswork. Speak with a real estate agent today to make sure you are pricing your home right. Don't have one? Contact us to work with one of our preferred partners in your area.