October 23, 2020
Why Pricing Your Home Correctly Matters
Are you getting ready to sell your home? There are many things to consider when placing your house on the market, but one of the most important is the listing price.
Having a reasonable asking price on your home that is both competitive, but not too high, is the key to selling your property. Most buyers have been looking at houses for a while and are anxiously waiting for the perfect home with the perfect price tag to come on the market.
An underpriced home will bring in many interested buyers but won’t lead to you profiting from your investment. An overpriced home will attract fewer interested buyers and make it more difficult to sell your house. However, changing your price drastically after its initial listing can cause people to question if the property is hiding unseen issues.
How to Decide the Price
Deciding on a price to list your home is no easy task and takes research and good judgment. You’ll want to take these things into consideration:
- The Current Market – Look into current trends and do research on comparable properties to help you better determine your asking price. Buyers will compare and contrast your home to others, so you want to be able to compete with them.
- Added Value – See if renovations and other changes you’ve made to your house add value that would give you a competitive advantage in the market.
Danger of Overpricing
Overpriced homes are difficult to sell. If your property isn’t comparable to other homes on the market, buyers may not even consider it. People tend to stay away from houses outside of their price range.
You also have to consider who would be able to afford your house. If your house is overpriced it could be difficult for potential buyers to get approved for the loan. The longer the process of getting approved is for the buyer, the longer it’ll take you to close.
Since overpriced houses attract fewer leads, your house will sit on the market longer. The older your listing is, the harder it will be to sell.
While overpricing isn’t beneficial, underpricing can be just as detrimental. This is especially true if you are worried about losing money. Depending on your circumstances you might need to sell your home fast! If that’s the case, settling for a lower price might be needed to attract buyers. This strategy will most likely cause you to miss out on any equity your property has accumulated.
It’s important to get the help of a professional to ensure that you set the right price for your house and your current situation. Overpricing and underpricing can both greatly impact how soon you sell your house. Pricing your home correctly matters. Whether it be through the help of a professional, or careful personal research, you’ll want to make sure you choose the perfect listing price.
Let our team at Method Mortgage lead you to the smartest way home. Give us a call today!