Real Estate Pricing
When it comes down to it, buyers and sellers want the same thing: the best deal in the shortest amount of time.
I can’t imagine there are many people in the real estate industry who want a drawn-out sale for the worst price possible – but one way to make that happen is by improperly pricing your home.
It’s all about finding that sweet spot; you don’t want to price too low so you get less than you deserve, or too high so you don’t make a sale.
So how is the price determined for real estate?
A lot of factors are taken into consideration when finding that right price for your home. Your real estate agent will look at recent market data, local competition, and any recent improvements or upgrades you’ve made to the house to determine an accurate home value.
“If I just overprice my house, I’ll get a better deal…right?” Not exactly. If the house is overpriced, it simply won’t gain the attention the seller wants. Prospective buyers will see right through an unfair price and most likely skip it altogether. After sitting on the market for a few weeks, the house will lose the fresh appeal of a new listing and the seller will have to lower the price anyway. Buyers usually screen properties by cost, so a house that should be in their budget won’t make their radar if it’s overpriced.
The best way to price a house right now is to underprice it and hope for a bidding war. Properties listed below market value will often receive multiple offers and could end up selling for above the asking price. We are currently dealing with a bottleneck of listings from the COVID shutdown, which means that you need to help make your property stand out. One of the best ways to do that is to underprice your property to generate a lot of interest. As mentioned above, you don’t want to dramatically underprice a property because then you risk not getting the proper value for our home. Again, looking at market trends in the area helps to determine a good list price to start the offer process.
Robyn VanderVennen
The Kim Kehoe Team
