Pricing Your House Right Still Matters Today

Pricing Your House Right Still Matters Today

Failing to set an accurate asking price for your house in today's market could have significant consequences. While the current real estate market may not be as frenzied as during the 'unicorn' years, well-priced homes are still selling quickly and attracting multiple offers due to the low inventory of available properties. According to data from the National Association of Realtors (NAR), a staggering 76% of homes were sold within a month in June, with the average property receiving 3.5 offers.

To ensure you benefit from these advantageous market conditions, it is crucial to work with a qualified real estate agent. Only an agent possesses the expertise required to determine the appropriate asking price for your home based on its current market value. Failing to do so accurately could potentially lead to missed opportunities, a prolonged selling process, or even leaving money on the table. Thus, relying on a knowledgeable agent becomes paramount to achieving a successful and timely sale.

The price you set for your house sends a message to potential buyers.

Setting the price too low for your home could raise concerns among potential buyers about its condition or create the impression that something might be wrong with it. Additionally, undervaluing your property might result in leaving money on the table, ultimately diminishing your purchasing power when looking for your next home.

On the other hand, pricing your house too high may deter buyers from even considering a tour. This can lead to a prolonged time on the market, and to regain interest, you might have to resort to a price reduction. However, it's important to be aware that a price drop could be viewed as a red flag by some buyers, sparking questions about why the price was decreased and whether there are underlying issues with the home. Striking the right balance with the asking price is crucial to attract interested buyers and ensure a successful and timely sale without compromising the property's perceived value.

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.

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 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