Why Pricing Your Home Correctly Still Matters
Have you noticed a little bit of tempering in the frenzied pace of today’s housing market? We’re not operating at the fever pitch we saw during the so-called ‘unicorn’ years, homes that are priced correctly still sell quickly and see multiple offers in today’s market. That’s because the number of homes for sale is still so low. Data from the National Association of Realtors (NAR) shows 76% of homes sold within a month and the average saw 3.5 offers in June.
To set yourself up to see advantages like these, you need to rely on a REALTORS®’s market expertise. Only a REALTOR® has access to Realtors Property Resource® (RPR), and we at Johnson & Burge use RPR as well as other exclusive tools to ensure that you’re able to make a great move.
The price you set for your house sends a message to potential buyers.
Price it too low (“give it away”) and you might raise questions about your home’s condition or lead buyers to assume something is wrong with it. Not to mention, if you undervalue your house, you could leave money on the table, which decreases your future buying power.
On the other hand, price it too high (“scare them away”) and you run the risk of deterring buyers from ever touring it in the first place. When that happens, you may have to do a price drop to try to re-ignite interest in your house when it sits on the market for a while. But be aware that a price drop can be seen as a red flag for some buyers who will wonder why the price was reduced and what that means about 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."
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. Just right.
Pricing your house correctly based on market conditions increases the chance you’ll have more buyers who are interested in purchasing it. That makes it more likely you’ll see multiple offers too. Plus, when homes are priced right, they still tend to sell quickly.
To get a high-level look into the potential downsides of over or underpricing your house and the perks that come with pricing it at market value, see the chart below:
Lean on a Professional’s Expertise to Price Your House Right
So why is it essential to find the right price? We at Johnson & Burge have the skill and the insight necessary to find the right market value of your home. We will use our expertise to determine a realistic listing price by assessing:
The prices of recently sold homes
An examination of why homes near you did not sell
The current market conditions
The size and condition of your house
The location of your house
Bottom Line
Pricing your house correctly for today’s market is critical, so don’t rely on guesswork. Let’s connect to make sure your house is priced right for today’s market.