Home Sellers: Here’s Why It’s Crucial To Ensure Your Price Is Right
SOURCE: Realtor.com
When you’re putting your house on the market, deciding how much to sell it for is a major decision.
You want to price the home competitively to meet the market where it’s currently at—but you don’t want to leave any money on the table, either.
Your real estate agent should be able to give you expert advice, since the pro has experience, know-how, and familiarity with your local area.
The goal should be to get the price right from the start so buyers will pounce on your property and make an offer.
Take a look at four reasons why this is so important:
1. The right price can make your home sell faster and prevent price cuts
The National Association of Realtors® 2023 Profile of Home Buyers and Sellers found the longer a home stays on the market without selling, the more its sale price generally declines compared with the original listing price.
NAR found a third of homes sitting on the market for three to four weeks had their price reduced at least one time.
As the weeks on the market increased, so did the number of times the price was reduced.
Pricing the house correctly early on will decrease the odds your home will sit on the market without any offers.
This will, in turn, decrease the likelihood that you’ll even need to lower the listing price at all.
2. You can affect buyers’ outlooks from the start
The listing price is the “price tag” of the home.
If you price your house too high, home shoppers might immediately dismiss it because it’s out of their price range.
On the other hand, if you price it too low, shoppers might suspect there’s something wrong with the home or that there’s some kind of catch.
If your home doesn’t sell for weeks because it’s not priced right, it can become stigmatized for being on the market too long—leaving buyers wondering why it hasn’t sold yet.
3. The right price can spur a bidding war
If you’re in a seller’s market and your house price is comparable with other homes in the area, it boosts the chances that multiple buyers will want to purchase your home.
If that happens, they’ll compete for your property by making higher offers in a bidding war.
4. Your odds of getting a higher offer go up
Even if you don’t have a bidding war on your hands, your house can still sell for more than the listing price.
If your home is considered fairly priced and comparable with the local market, homebuyers are more inclined to submit an initial offer above the asking price just to increase the odds you will accept it.