When you make a move, you want to sell your house for the highest price possible. That might be why many homeowners are eager to list in today’s sellers market. After all, with record-low inventory and high buyer demand, many homes are selling for more than asking price. Data from the National Association of Realtors (NAR) shows 46% of homes are selling above list price today.
But even in a market like we have now, working with an agent to set the right asking price is critical, as pricing it too high or too low could have a negative impact on your final sale. Here’s why.
Pricing Your House Right Is Crucial Even in a Sellers’ Market
The price you set for your house sends a message to potential buyers. Price it too low and you might raise questions about your home’s condition or lead buyers to assume something is wrong with the property. Not to mention, you could leave money on the table, which decreases your future buying power if you undervalue your house.
On the other hand, price it too high and you run the risk of deterring buyers. When that happens, you may have to do a price drop to try to reignite 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.
In other words, 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. Pricing your house fairly 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 a bidding war, too. And when a bidding war happens, you’ll likely get an even higher final sale price. Plus, when homes are priced right, they tend to sell quickly.
To get a 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
Selling your home is a deeply personal life decision that needs to be addressed with great care. Additionally, there are several factors that go into pricing your house and balancing them is the key. That’s why it’s important to lean on an expert real estate advisor when you’re ready to make a move.
Many folks rely on websites like Zillow or Redfin to price their homes, which, unfortunately, can be extremely inaccurate. Zillow for example offers what they call a “Zestimate”, which uses an algorithm to read sources like public data and comparable sales to generate a price. The problem with this is that an algorithm cannot evaluate whether or not the data is outdated, or factor if you’ve made improvements to your home. It also cannot discern if there may have been an error in something like a tax assessment or taxes paid, etc.
A local real estate advisor is knowledgeable about:
- The value of homes in your neighborhood and specific neighborhood attributes
- The current local market conditions & demand for homes
- The desirability of local amenities, school districts, neighborhoods etc. that can justify pricing variations
- The pricing strategies needed for best success
- The current local and statewide legislation that could impact home values
- The actual updates and upgrades made to your home
- The functionality of your home and caretaking practices
- The condition of your house, any maintenance concerns, and how they may affect the value
A real estate professional will balance all of these factors to make sure the price of your house makes an ideal first impression; giving you the greatest return on your investment in the end.
Here at Brick & Corbett we recognize how essential the accuracy of this information really is. We know that in today’s ever-changing market, a home valuation completed 9 months ago could possibly be different today. This knowledge might be the difference that could unlock serious power-ups for you. This is why we’ve made it our mission to offer a free, fully-customized home valuation, completed by a member of our team, to every homeowner in Northern Michigan, without any obligation whatsoever to sell.
Get your free, no-obligation, custom home valuation here.
Even in a hot sellers’ market like this, pricing your house correctly is critical. Don’t rely on guesswork or computers to decide what price you deserve. Let’s connect today to make sure your house is not only perfectly priced, but also marketed thoughtfully and strategically in order to expose it to the maximum number of buyers looking for a house just like yours to call their new home.