Why Is It So Important To Price Your Home Correctly?
When you decide to relocate, you want to get the best price for your home. That may explain why, in today's sellers' market, many homeowners are ready to put their homes on the market. After all, many properties are selling for more than the asking price due to record-low availability and great buyer demand. According to the National Association of Realtors (NAR), 46 percent of properties are selling for more than their asking price today.
Even in a market like ours, working with an agent to determine the proper asking price is crucial, since pricing it too high or too low will hurt your chances of selling. This is why.
Even in a seller's market, it's critical to price your home correctly.
The price you decide to list your home for sends a message to potential buyers. If you price it too low, you risk raising concerns about the quality of your home or leading buyers to believe something is wrong with it. Not to mention, if you undervalue your home, you may be leaving money on the table, reducing your future purchasing power.
On the other hand, if you price it too high, you risk scaring away potential purchasers. If this happens, you may need to lower your price to re-ignite interest in your home after it has been on the market for a time. However, be aware that a price reduction may be interpreted as a red flag by certain purchasers, who will ask why the price was decreased and what it signifies for the home.
To put it another way, consider of your home's price as an objective. Your goal is to hit the sweet spot — not too high, not too low, but right on the money. If you price your home reasonably based on current market conditions, you'll have a higher chance of attracting more purchasers. It's also more likely that you'll see a bidding battle as a result of this. And if there's a bidding war, you'll almost certainly obtain a higher ultimate sale price. Furthermore, when homes are priced correctly, they sell rapidly.
See the chart below for an overview of the potential drawbacks of overpricing or underpricing your home, as well as the benefits of pricing it at market value:
To price your home correctly, rely on the expertise of a professional.
There are various aspects that go into determining the price of your home, and the goal is to strike a balance between them. That's why, when you're ready to relocate, you should seek the advice of a professional real estate counselor. A local real estate agent is knowledgeable in the following areas:
- The resale value of your neighborhood's houses
- In today's market, there is a high demand for residences.
- The state of your home and its impact on its value
A real estate agent will weigh these aspects to ensure that your home's price creates the best first impression and provides you with the highest return on investment.
Even in a seller's market, getting the correct price for your home is crucial. Don't make assumptions. Let's get together to make sure your home is priced correctly.