Why Pricing Your House Right Matters
In today’s real estate market, setting the right price for your house is one of the most important things you can do. According to the U.S Economic Outlook by NAR, existing home prices nationwide will increase 4.7% in 2020 and 4.1% in 2021. This means experts anticipate home values to continue climbing into next year. Low inventory is largely keeping them from depreciating. Mark Fleming, Chief Economist at First American, notes: “The housing market amid the pandemic faces a significant supply and demand imbalance, and the result is accelerating price appreciation.” When it comes to pricing your home, setting it at or slightly below market value will increase the visibility of your listing and drive more buyers your way. This strategy actually boosts the number of buyers who will see your home in their search process. Instead of trying to win the negotiation with one buyer, you should price your house so that demand is maximized. This way, potential buyers don’t get deterred by a high price tag and you don’t find it sitting on the market longer than it should. By doing so, you won’t be negotiating with one buyer over the price. Instead, you’ll have multiple buyers competing for the property.
Sits on the market longer
Deters potential buyers because it is priced too high
Decreases future buying power
Price drops can send the wrong message to buyers
Deters potential buyers because they think something is wrong
The secret is making sure your house is Priced To Sell Immediately (PTSI). That way, your house will be seen by the most buyers. It will be more likely to sell at a competitive price and potentially be bid on by more than one interested buyer. Bottom Line If you're thinking about listing your house this season, let’s discuss how to price it right so you can maximize your exposure and your return.
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