In today’s real estate market, setting the right price for
your house is one of the most valuable things you can do.
According to the U.S. Economic Outlook by the National
Association of Realtors (NAR), existing home prices nationwide are forecasted
to increase 4.7% in 2020 and 4.1% in 2021. This means experts anticipate home
values will continue climbing into next year. Today, low inventory is largely
keeping prices from depreciating. Danielle Hale, Chief Economist at
realtor.com, notes:
“Looking at the sheer number of buyers, low mortgage
rates, and limited sellers, the strength of home prices–which are now growing
at the highest pace since January 2018–makes sense.”
When it comes to pricing your home, the goal is to increase
visibility and drive more buyers your way. Instead of trying to win the
negotiation with one buyer, you should price your house so that demand is
maximized and more buyers want to take a look.
How to Price Your Home
As a seller, you might be thinking about pricing your house
on the high end while so many of today’s buyers are searching harder than ever
just to find a home to purchase. You’re thinking, higher price, greater profit,
right? But here’s the thing – a high price tag does not mean you’re going to
cash in big on the sale. It’s actually more likely to deter buyers and have
them looking at the houses your neighbors are selling instead.
Even today, when the advantage tips toward sellers because
there are so few houses for sale, your house is more likely to sit on the
market longer or require a price drop that can send buyers running in the other
direction if it isn’t priced just right.
A Trusted Real Estate Professional Will Help
It’s important to make sure your house is priced correctly
by working in partnership with a trusted real estate professional. When you
price it competitively, you won’t be negotiating with one buyer over the price.
Instead, you’ll have multiple buyers competing for the home, and that’s what
ultimately increases the final sale price.
The key is making sure your house is priced to sell
immediately. That way, it will be seen by the most buyers. More than one of
them may be interested, and your house will be more likely to sell at a
competitive price.
Bottom Line
If you’re thinking about listing your house this fall, let’s
discuss how to price it right so you can maximize your exposure and your
return.
Source: Real Estate with Keeping Current Matters