We’ve watched home prices rise in 2020. According to U.S. Economic Outlook by the National Association of Realtors, the increase in property values isn’t stopping – with prices expected to rise through 2021.
Knowing this information, along with low inventory and buyers on the search, there are sellers who are making a mistake:
Pricing their home too high.
Pricing your home for today’s market is a top priority if you are serious about selling.
Why Pricing Matters
Pricing your home for today’s market matters because it makes your property visible to the right buyers. Let’s say you price your home for 20% above the current market value. That could increase the price enough that it becomes out of price range for the very buyers you want to target.
On the other end of the spectrum, some sellers want to price their home under market value because they believe it will spur bidding wars. This can also lead to disappointment. Pricing a home under market value can deter potential buyers who assume something is wrong with the property.
But What About Negotiations?
Many sellers believe that they must price their homes high, because buyers will want to negotiate a lower price. A high list price is more likely to deter buyers, who are likely to stick to properties closer to their budget.
Even with low inventory, a listing price that is too high will likely sit on the market or require a price drop – leading buyers to believe that something is off with the home. Instead of preparing yourself for low offers, price your property for market value and be willing to stick to your number.
How do you Price it Right?
A trusted real estate professional will pull comps, or comparable sales, that have recently taken place in your market and review with you. By pricing the home competitively for today’s market, buyers will know you are serious about selling – and not up to playing pricing games.
Are you ready to find out what your home is worth?