Your asking price communicates a message to potential buyers from the moment they lay eyes on your listing. If it's set too high, you risk turning people away. As a recent article from U.S. News Real Estate points out:
“Even in a hot market where there are more buyers than houses available for sale, buyers aren’t going to pay attention to a home with an inflated asking price.”
Today's buyers are particularly sensitive to overpriced listings, given the strain on their budgets caused by rising home prices and mortgage rates. If they perceive your house as overpriced, they may skip over it entirely or hesitate to make an offer.
This could result in a prolonged time on the market, something you want to avoid. A price reduction might become necessary, but this can be perceived negatively by buyers, raising concerns about the property or its desirability. As Forbes explains, a listing that sits on the market for too long can create a negative perception among buyers, leading them to assume something is wrong with the property.
“It’s not only the price of an overpriced home that turns buyers off. There’s also another negative component that kicks in. . . . if your listing just sits there and accumulates days on the market, it will not be a good look. . . . buyers won’t necessarily ask anyone what’s wrong with the home. They’ll just assume that something is indeed wrong, and will skip over the property and view more recent listings.”
Your Agent's Role in Pricing
Instead of aiming too high, it's wise to price your home at or slightly below its current market value. But how do you determine this ideal price? That's where your real estate agent comes in. With their expertise, they can conduct thorough research to assess the market value of your home. They'll consider factors like your home's condition, any upgrades, and recent sales of comparable properties in your area to pinpoint the optimal asking price.
By pricing your home correctly, you'll attract more buyers and increase the likelihood of receiving multiple competitive offers, which drives the price up. Properly priced homes also tend to sell quickly, facilitating a smoother sales process.
Wrapping Up: The Importance of Pricing Your Home Right
While maximizing your profit is undoubtedly a priority, setting an appropriate asking price is key to attracting buyers and expediting the sale of your home. Reach out to us to ensure your house is priced right, allowing us to optimize your profit while capturing the interest of motivated buyers ready to make competitive offers.
Some article content courtesy of Keeping Current Matters
