Tuesday, May 30, 2017

How to Price Your Home in a Seller’s Market

We are in a seller’s market, but there are a few reasons why you should still list your home at market value.

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Right now, Austin is in a strong seller’s market. There is a lot of demand and NOT a lot of supply. However, we are still seeing some negative effects for sellers who are too aggressive with their asking price. 

When you price your home too high, it’s going to spend more days on the market. As the days on market go up, two questions will pop into buyers’ minds: What’s wrong with the house? Why doesn’t anyone else buy it? 

When a buyer goes into your home with those two questions, you will never get a positive return on your home sale.

If a buyer has doubts about your home, you will not sell above market value.

Once your home has been on the market for four or five weeks, you may need to consider a price reduction, which is not a good position to be in. After all, most homes in our market are selling quickly—and for over asking price. 

If a buyer sees that your home has been on the market and that you’ve gone through a price reduction, that may discourage them from making a strong offer on your home.

So, how do you accurately price your home in this market? 

Even in a seller’s market, the market value of a home is defined as what a willing buyer will pay for that home, and what a willing seller will sell it for. It’s not what you think a buyer will pay for your home, plus an additional 20%. 

It’s really important to price your home at market value. As your agent, we’ll go over the comparable properties and determine the market value of your home. Pricing your home at market value creates major demand. That is how you get multiple offers, which usually results in selling for more than the market value. 

It’s very important to start with the market value of your home when you create your list price if you want to sell for above market value later. 

If you have any questions about accurately pricing your home, just give us a call or send us an email. We would be happy to help you!