By: Jonathan Ruggiero
Last year, the housing market slowed down in response to higher mortgage rates, and that had an impact on home prices. If you’re hitting a ton of listing appointments, that means you’ll want to adjust your sellers expectations accordingly. As realtor.com explains:
“. . . some of the more prominent pandemic trends have changed, so sellers might wish to adjust accordingly to get the best deal possible.”
In a more moderate market, how you price your listing will make a big difference to not only your sellers bottom line but to how quickly their house could sell. And the reality is, homes priced right are still selling in today’s market.
Why Pricing Your House Appropriately Matters
Especially today, an asking price sends a message to potential buyers.
If it’s priced too low, you may leave money on the table or discourage buyers who may see a lower-than-expected price tag and wonder if that means something is wrong with the home.
If it’s priced too high, you run the risk of deterring buyers. When that happens, you may have to lower the price to try to reignite interest in your listing when it sits on the market for a while. But be aware that a price drop can be seen as a red flag by some buyers who will wonder what that means about the home.
To avoid either headache, price it right from the start. As a real estate professional, your sellers trust you to determine that ideal asking price. By balancing the value of homes in the neighborhood, current market trends, buyer demand, the condition of your sellers home, it's your job to find the right price. This helps lead to stronger offers and a greater likelihood that house will sell quickly.
The visual below helps summarize the impact your asking price can have:
Bottom Line:
When selling a house, it is important to price it correctly in order to attract potential buyers and ultimately sell the property. Pricing a house too high can deter buyers and prolong the selling process while pricing it too low can result in lost profits. A real estate agent or professional appraiser can provide a detailed analysis of the housing market and comparable sales in the area to determine the correct listing price for the house. Additionally, keeping the house in good condition and staging it well can also help to attract buyers and increase the chances of a successful sale.