The Real Estate Market today is considered a Seller’s Market. With low inventory on houses for sale partnered with a high buyer demand, homes today are selling way above the asking price at a record rate. According to the latest Realtors Confidence Index Survey from the National Association of Realtors (NAR):
- Homes typically sell within 17 days (compared to 26 days one year ago).
- The average home sold has five offers to pick from.
- 54% of offers are over the asking price.
Due to multiple buyers competing for so few homes, bidding wars are driving up the home prices. It is forecasted that existing home prices are expected to increase by a whopping 8.9% this year! That said, even when the prices are marked up, it is still important to price your house right. It is really tempting to price your house on the high side to seize the opportunity of this trend but doing so may limit your house’s potential.
The Price Should Be Right
Setting a high price tag on your house doesn’t mean that you’re getting a big cash out on the sale. While you might be trying to maximize your return, the cost might be bigger than you thought. A high list price is more likely to deter buyers, sit on the market longer, or require more price drops that can raise questions among prospective buyers.
Instead, focus on setting a price that’s fair. A Real Estate Professional knows the right value of your home by pricing your house based on its current condition and similar homes that have recently sold in your area. Your agent can help you set a price that’s realistic and eye-catching for the buyers which creates a bidding war.
When you price your house right, you increase your home’s visibility, which drives more buyers to your front door. The more buyers that tour your home, the more likely you’ll have a multi-offer scenario to create a bidding war. When multiple buyers compete for your house, that sets you up for a bigger win.
Finding the right price for your house is a difficult task if done alone. Connect with us! We’ll make sure to find the right price that gives you the maximum gain for your real estate property.