In the current real estate market, setting the right price for your home remains crucial, even if it’s not as frenzied as in previous years. While the market may not be in its “unicorn” phase, properly priced homes are still selling quickly and attracting multiple offers due to the limited inventory of available properties. According to data from the National Association of Realtors (NAR), a staggering 76% of homes were sold within a month, with an average of 3.5 offers received in June.
To position yourself advantageously in this market, it’s essential to rely on the expertise of a knowledgeable real estate agent. They possess the necessary skills to determine the optimal asking price for your house.
Let’s explore why accurate pricing matters and what’s at stake if the price isn’t aligned with the current market value.
Setting the right price for your home sends a clear message to potential buyers. If you price it too low, buyers may wonder about its condition or assume there are underlying issues. Undervaluing your house may lead to leaving money on the table, affecting your future buying power.
On the other hand, overpricing your property could deter buyers from even considering it. In such cases, you might be forced to reduce the price later on to revive interest. However, a price drop can raise questions among buyers about why the price was lowered and what issues the home may have.
NerdWallet puts it succinctly in a recent article:
“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.”
The key to pricing your home correctly is aiming for the center, where the price aligns with market value—not too high, not too low.
Setting a fair price based on current market conditions increases the likelihood of attracting more interested buyers, which, in turn, may lead to multiple offers. Properly priced homes tend to sell quickly, ensuring a smoother and faster selling process.
To better understand the potential downsides of over or underpricing your house and the benefits of pricing it at market value, take a look at the chart below:
Why You Need a Professional Agent to Price Your Home Right
Wondering why an agent’s expertise is essential in determining the right price for your home? Local agents possess the skill and insight necessary to evaluate your property’s market value. They consider factors such as:
1.Prices of recently sold homes in the area
2. Current market conditions
3. Size and condition of your house
4. The location of your property
By leveraging this expertise, your agent can help you set an accurate listing price that aligns with market demand, maximizing your chances of a successful and profitable home sale.