Thinking about selling? Pricing it right is crucial!
Everyone by now understands that we are in a seller’s market. With the recent surges in buyer demand and low inventory, there is no surprise as to why homes are selling currently at prices that our above record asking prices historically. To put things in perspective, the latest Realtors Confidence Index Survey from the National Association of Realtors (NAR) states:
● Homes typically sell within 17 days (compared to 26 days one year ago).
● The average home sold has five offers to pick from.
● 54% of offers are over the asking price.
The reason for this is because there are so few homes that are available and not enough buyers to accommodate them with sufficient inventory the bidding wars have driven home prices through the roof. It does not seem like it is coming to a halt yet either because according to an average of leading expert projections, existing home prices are expected to increase by 8.9% this year.
With that being said it may seem tempting to price your home on the higher side to take advantage of the seller’s market, but doing so can potentially limit your home’s potential if not done correctly.
Why Pricing Your House Right Matters
What is often confused at the moment is that giving your home that high price tag does not necessarily mean that you’re going to cash in on that big sale. Let me explain, of course you should try to capitalize on the current market and receive that high market return, however, you need to proceed with caution because it may lead to an even higher tradeoff. A high listing price on your home is more than likely going to either deter any potential buyers, force your home to stay on the market longer, or necessitate a price drop that in turn will cause room for reasonable doubt amongst potential buyers (and you definitely don’t want that).
What should be done instead is setting a price that is fair, all things considered of course. We as Real Estate Professionals know what the true value of your home is. We do this by creating a Comparative Market Analysis that allows us to price your home according to its current condition and similar homes that have been sold within your area. This allows us to help you set a price that is not only attainable but reasonable as well so that both buyers and sellers are content.
When your price is just right the visibility of your home increases within the market. This in return allows you to bring buyers right to your front door. When you have more buyers coming to inquire about your home then you increase the amount of tours of your property which also increases the likelihood of multiple offers being submitted which causes a bidding war. At this point you have set yourself up to capitalize on a larger return because you would ideally have more buyers competing over your home.
To sum it all up:
When it comes down to pricing your property, having the help of real estate professionals is essential and here at CMFL Homes Group we know how to get that done! Let’s get connected so that we can optimize your exposure, your timeline, and the return on your investment!