In case you haven’t heard, we’re in a seller’s market. Housing inventory remains low while demand is still high. Record-low interest rates and changes in lifestyle due to the pandemic have been driving the real estate market for many months. If you’re a seller, then you’re in an enviable position. But that doesn’t mean you can price your home unrealistically high and expect the offers to come rolling in. In a seller’s market, it’s still important to price your home correctly from the start. Here’s how.
Make sure it’s a seller’s market
It’s good advice to confirm that you’re actually in a seller’s market before you make any pricing decisions. While most markets in America are experiencing a seller’s market, demand for homes can vary from place to place. You should look at a few key things when making the decision. First, how long have listings in your neighborhood been on the market before going into contract on average? Fewer days on the market are a good indication that sellers have an advantage. Second, how does the selling price compare to the asking price on recently sold comps? If houses are selling for asking or more, that is also a good sign it’s a seller’s market. Third, have prices been rising over time? If they have, you can also feel confident that you’re in a seller’s market.
Look for the right comps
One of the most common ways to get an idea of what your home is worth is to look at comparable sales. But you need to make sure you’re comparing apples to apples. With fewer homes on the market right now, it may be more difficult to find recently sold homes in your area that are similar to yours. Try finding homes that are about the same size, in the same condition, and with many of the same amenities to compare yours to.
Choose the right pricing strategy
There are basically three strategies you can use when pricing your home for sale. You can price high, low, or at market value. There are compelling arguments in favor of each strategy. Pricing high can work if you aren’t in a hurry to sell or think you could get an all-cash deal with an investor. But be aware that your home could sit on the market or your buyer may have trouble closing on their loan if the appraisal comes in low. Pricing low will give your home lots of exposure and could provoke a bidding war, driving the final price up. Listing at market value gives you the best of both worlds, setting you up to get a full-price offer quickly.
Work with a pro
Finally, the best thing you can do to make sure your home for sale is priced correctly from the start is to work with an experienced professional real estate broker. Partnering with an expert in your area is key to a successful home sale. When you work with a good agent, they will bring their knowledge and experience to the table to help you make key decisions. This will make the process less stressful for you and more likely to end with favorable results.