With the current low inventory, it’s no surprise that homes that are priced right are still selling quickly and receiving multiple offers. However, setting the correct asking price for your house is not something that should be taken lightly. A professional real estate agent has the expertise needed to ensure your home is priced accurately. In this blog post, we’ll discuss why setting the correct asking price is essential in today’s market.
Homes that are priced correctly are still selling quickly and receiving multiple offers at the moment, even though the market isn’t as crazy as it was during the “unicorn” years. The low number of available homes is to blame for this. According to National Association of Realtors (NAR) data, 76% of homes sold within a month, and in June, there were on average 3 point 5 offers.
The Importance of First Impressions
The price you set for your house sends a message to potential buyers. Price it too low, and you risk raising questions about your home’s condition, or even worse, lead buyers to assume something is wrong with it. When buyers see your home priced accurately, it sends the message that it is a desirable property and worth their time to take a closer look. The first impression a buyer has of your home can go a long way, so setting the right price is crucial.
Leaving Money on the Table
If you undervalue your home, you could leave money on the table, which translates to decreased future buying power for you. A professional real estate agent can provide a market analysis of your home to determine the right asking price based on current trends, competition, and other factors. This analysis will ensure your home is priced accurately and fairly, maximizing your selling power.
Finding the Sweet Spot
Pricing your home accurately is all about finding the sweet spot. A price that’s too high will sit on the market longer, reducing its appeal and potentially leading to price reductions and lower offers. On the other hand, a price that’s too low will attract plenty of offers, but you’ll miss out on the profit you could have made. A reliable agent will ensure your home is priced accurately to achieve the best possible outcome.
The Benefit of Multiple Offers
When your home is priced accurately, you’ll be in the best position to receive multiple offers. This situation is beneficial because it can create a bidding war, resulting in a higher final price. In a market like today’s, where low inventory is driving up competition, an accurate list price will put your home in the best possible position to receive multiple offers.
A recent article from NerdWallet sums it up like this:
“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.”
To get a high-level look into the potential downsides of over or underpricing your house and the perks that come with pricing it at market value, see the chart below:
The Expertise of an Agent
Finally, the most critical factor in pricing your home accurately is partnering with a professional real estate agent. Only an agent has the knowledge to provide an accurate market analysis and set the right asking price for your property. With their expertise, you can take advantage of the benefits that accurate pricing offers, such as increased interest, faster sales, and high profits.
Setting the right asking price for your home is a crucial decision that should not be taken lightly. With the current low inventory, the benefits of accurate pricing are apparent. Partner with a professional real estate agent with the expertise to provide a market analysis and set the proper asking price based on today’s market trends. Doing so will ensure you receive the perfect first impression, a higher profit, and multiple offers, all leading to a successful sale.