Pricing your home correctly is crucial when selling, even in a seller’s market
There’s no denying we’re in a sellers’ market. With low inventory and high buyer demand, homes today are selling above the asking price at a record rate. According to the latest Realtors Confidence Index Survey from the National Association of Realtors (NAR):
- Homes typically sell within 17 days (compared to 26 days one year ago).
- The average home sold has five offers to pick from.
- 54% of offers are over the asking price.
Because so many buyers are competing for so few homes, bidding wars are driving up home prices. According to an average of leading expert projections, existing home prices are expected to increase by 8.9% this year.
Yet even in today’s red-hot sellers’ market, it’s important to price your house right. While it may be tempting to price your house on the high side to capitalize on this trend, doing so could limit your options and your house’s potential.
Why pricing your house right matters
Here’s the thing – a high price tag doesn’t mean you’re going to cash in big on the sale. While you may be trying to maximize your return, the tradeoff may be steep. A high list price is more likely to deter buyers, sit on the market longer, or require a price drop that can raise questions among prospective buyers.
Instead, focus on setting a price that’s fair. Real estate professionals know the value of your home. By pricing your house based on its current condition and similar homes that have recently sold in your area, your agent can help you set a price that’s realistic and obtainable – and that’s good news for you and for buyers.
There’s no question that today’s housing market belongs to the sellers, but that doesn’t mean it’s a wise choice to list your home at a higher price. Pricing your house correctly actually sets you up for greater success.
When you price your house right, you increase your home’s visibility, which drives more buyers to your front door. The more buyers that tour your home, the more likely you’ll have a multi-offer scenario to create a bidding war. When multiple buyers compete for your house, that sets you up for a bigger win.
Overpricing your home seems attractive in a hot seller’s market such as this, but actually, pricing at current market value (or slightly below) might be a better strategy to drive interest level and potentially experience a multiple offer situation. With any property’s price, while a buyer may be willing to pay top dollar, do not overlook the appraisal process as many home sale transactions either go back to the negotiation table or fall apart if a property does not appraise for the amount agreed upon by the seller and buyer.
We know local because we are local
Locally homegrown and nationally recognized, Fred Real Estate Group is Central Oregon’s number one independent brokerage with over 140 real estate experts and one firm belief: Every client we work with deserves an amazing real estate experience. We’re a proud local business that offers full-service solutions for clients and brokers with a fresh approach and brilliant results. We’re headquartered in beautiful Bend, Oregon, and we’ve been connecting home buyers and sellers throughout Central Oregon for over a decade, and we’d love to work with you.
When it comes to pricing your house, working with a local real estate professional is essential. Let’s connect so we can optimize your exposure, your timeline, and the return on your investment, too. Get in touch via the form below and we’ll follow up promptly: