Although the current housing market may not be as bustling as it was during the 'unicorn' years, properly priced homes are still selling quickly and receiving multiple offers. This is primarily due to the limited inventory of available homes for sale. According to data from the National Association of Realtors (NAR), 76% of homes were sold within a month in June, with an average of 3.5 offers per home.
To ensure that you can take advantage of these favorable conditions, it is crucial to rely on the expertise of a real estate agent. Only an agent has the knowledge and experience necessary to determine the appropriate asking price for your home. Failing to accurately price your home according to the current market value can have significant consequences.
If you price your home too low, it may raise concerns about its condition or give buyers the impression that something is wrong with it. Additionally, undervaluing your house can result in leaving money on the table, which can have a negative impact on your future buying power.
On the other hand, pricing your home too high can discourage potential buyers from even considering it, leading to a lack of interest and fewer property viewings. In such cases, you may need to reduce the price to reignite interest, but it's important to note that a price drop can be viewed as a warning sign by some buyers. They may question why the price was reduced and what it implies about the condition or value of 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.”
When it comes to pricing your home, envision it as a bullseye. Your objective is to hit the center spot, aligning with the market value - not exceeding it or falling short.
By pricing your house in accordance with market conditions, you enhance the likelihood of attracting a larger pool of potential buyers. This, in turn, increases the chances of receiving multiple offers. Additionally, appropriately priced homes have a tendency to sell expeditiously. To gain a comprehensive understanding of the potential drawbacks of overpricing or underpricing your house, as well as the advantages of pricing it at market value, please refer to the chart provided below:
Why is it crucial to have an agent when determining the right price for your home? Your local agent possesses the expertise and knowledge required to accurately assess the market value of your property. They will rely on their skills to determine a realistic listing price by evaluating various factors, including:
The prices of recently sold homes
The current market conditions
The size and condition of your house
The location of your house
Bottom Line
To ensure your house is priced accurately for the current market, it is essential to avoid guesswork. Instead, collaborate with a reliable real estate agent who can provide expert guidance and ensure your house is priced appropriately.
