The Continuing Importance of Properly Pricing Your House - Why Getting It Right Matters Today

Lisa Mailhot  |  July 31, 2023

Sellers

The Continuing Importance of Properly Pricing Your House - Why Getting It Right Matters Today

Two men talk with a woman holding a notebook in a bright living room.

 

In the present real estate landscape, while the market may not be as feverish as during the 'unicorn' years, homes that are priced appropriately still hold significant value. They continue to sell rapidly and attract multiple offers, chiefly due to the persistently low inventory of available homes. According to data from the National Association of Realtors (NAR), a staggering 76% of homes were sold within a month, with an average of 3.5 offers received in June.

To leverage these advantages, enlisting the assistance of a qualified agent is crucial. Only such professionals possess the expertise required to determine the optimal asking price for your house. Here are the potential consequences if the price set fails to align with the current market value.

The message conveyed to potential buyers is influenced greatly by the price you set for your house.

Should you undervalue your home, questions about its condition may arise, or buyers might assume something is wrong with it. Moreover, you risk leaving money on the table, impacting your future buying power.

On the other hand, overpricing may discourage buyers from even considering a tour of your property, leading to potential market stagnation. In such cases, a price drop may be necessary to reignite interest, but this action could be perceived as a red flag by some buyers, prompting them to question the reasons behind the reduction and the implications for the home.

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."

View pricing your home as a target, aiming straight for the center - precisely at market value, neither too high nor too low.

Setting a fair price based on current market conditions enhances the likelihood of attracting numerous interested buyers and increases the chances of receiving multiple offers. Additionally, appropriately priced homes tend to sell rapidly.

For an overview of the potential drawbacks of over or underpricing your house and the advantages of pricing it at market value, refer to the chart provided below:

Infographic comparing the effects of underpricing, market-value pricing, and overpricing a house.

Rely on the expertise of a professional to ensure your house is priced accurately

Wondering why an agent is indispensable in this process? Your local agent possesses the necessary skills and insights to assess the market value of your home. They will draw on their expertise to establish a realistic listing price by considering:

  • Recent sale prices of comparable homes.
  • Current market conditions.
  • The size and condition of your house.
  • The location of your house.

Bottom Line

Pricing your house at market value is of utmost importance, and it's crucial not to rely on guesswork. Let's get in touch to ensure your house is appropriately priced for today's market.

 

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