Pricing your home correctly is crucial in any real estate market, but especially in today’s market when inventory is low. Having a list price that’s both competitive and comparable to other homes with similar features to yours is the sweet spot when it comes to selling your home. If you price your home too high or too low, it could be a red flag for buyers.
Let’s examine the importance of having the correct list price when your home hits the market and how overpricing or underpricing your home could affect its sale.
Overpricing vs. Underpricing
If your home’s list price isn’t right, it’s usually because it’s too high compared to too low. However, there are instances where the home is underpriced, which has its own set of disadvantages.
Overpricing your home can discourage buyers from wanting to see your home, which means fewer showings and fewer potential offers. You might have to reduce the price to reignite interest, which can lead to more time spent on the market. The longer your home sits on the market, the less appealing it becomes to buyers.
While you would think underpricing your home would benefit you, that’s not always the case. If your home is priced too low, buyers might see that as a red flag that something is wrong with it or that it’s a fixer-upper that needs a lot of work. Listing your home for less money also means less profit and less money in your pocket.
Market Value
Working with a real estate agent who can pull comparable homes and knows the current market is the way to go to ensure you get the most money possible. Listing your home for what it is worth attracts more buyers, which results in a faster sale and could lead to a bidding war (which potentially means even more money for you!)
Keep in mind that just because you have a beautiful home in a great neighborhood, it doesn’t mean anything if the home isn’t priced correctly. Working with a trusted real estate agent can help ensure your transaction is seamless and done correctly! If you have questions about listing your home, please don’t hesitate to reach out to us! We would love to help you through the process!
