Finding the Right Price for Your Home
It’s no surprise that we are in a seller’s market. Homes are selling at record highs often with the buyers forgoing all contingencies and inspections. This seller’s market is being further exacerbated with low inventory but continued high demand. As a seller the goal is to get the highest price possible for your home however, even in a seller’s market pricing the home correctly is crucial. If you are looking to list your home and take advantage of this seller’s market, it is crucial to introduce potential buyers to your home at the correct listing price. This is where working with a real estate professional can help!
The Risks of Pricing Your Home Too Low
When your home goes live in MLS it is then syndicated to a multitude of sites. The photos you choose, the description of the home, and the price are the first introductions to buyers. If you price the home too low, this sends a message that the home may have an underlying issue that has not yet been disclosed. Pricing too low will also decrease your available equity to put towards another home purchase. In essence, by pricing too low you are undermining the value of your home and your buying power for your next purchase.
The Risks of Pricing Your Home Too High
On the other side, it is crucial not to price the home too high. Not only can the high price tag deter buyers from viewing the property, but the high price could fall outside of potential buyers’ search parameters. When outside of the buyer’s search parameters, this may mean your home is never even viewed by a potential buyer. Pricing too high happens often and it results in the property being on the market longer than anticipated and/or eventually resulting in a price reduction. With properties flying off the market, any property that has been on the market too long sends the wrong message to buyers. In turn, if you choose to proceed with a price reduction, this sends the same message of something being potentially wrong with the property that led to the decreased asking price.
How to Determine Market Value
Your goal is to price the home directly in the middle, right at market value. Working with an agent is the best way to ensure that you achieve this. An agent will run any comparable listings to your home and come up with the price that fits the market of the area. This is computed in many ways—the neighborhood, number of bedrooms and bathrooms, garage, square footage of living space and more. All of these factors combined will result in a listing price comparable to other similar listings in your area resulting in a market value.
Using a real estate agent to determine the correct market value increases your chances of being seen by more potential buyers. Pricing the home to maximize demand should be your overall goal and the more accurately priced the home is, the greater chance you have of inciting the interest of multiple buyers, allowing for multiple offers. It is often the properties that are priced at market value that sell the quickest. Using the correct market value ensures you give the best first impression when entering the market, will result in more offers and potentially a quicker sale, and give you the greatest return on your investment.
Work With an Agent to Maximize ROI
A real estate agent will consider the current demand, the value of similar homes in your neighborhood, and the overall condition, improvements, and features of your home. These factors combined will allow for your agent to determine the market value and help lead to increased visibility from buyers, the potential for a bidding war, and overall, a quicker sale. If you’re thinking about selling, connect with The Bateman Group to make sure your home is priced right for the local market, for the condition of your home and to stand out from competing inventory.