In this market of so many eager buyers, historically-low mortgage rates, and limited sellers, the strength of home prices are growing at the highest rate since January 2018. Setting the right price for one’s home is one of the most valuable things to do.
According to a recent report by the National Association of Realtors (NAR), US home prices are forecasted to increase 4.7% in 2020 and 4.1% in 2021.
Pricing a home correctly is about maximizing the demand, that is, to attract as many buyers as possible. Increasing visibility in the right way will drive more buyers toward a home which could lead to multiple offers.
Sellers may think about pricing their home on the high end, with the sense that buyers will pay a premium for a home at this hour and a higher price means a higher profit. However, a high price tag may actually deter buyers and have them looking at other well-priced homes in the neighborhood.
Even though the advantage tips toward sellers at this hour, a home priced too high may sit on the market longer. This could lead to a drop in price that could turn buyers off. Consider the information in this graph:
The best way to price a home correctly is to partner with a trusted, experienced agent. When a home is priced well from the beginning, it is likely that many buyers will come around and end up competing for the home. This is what yields a higher sale price, and ultimately a higher profit.
The ultimate goal of pricing a home well and accurately is to have it seen by the most buyers possible. More than one will very likely be interested and in the end, the home will sell at a competitive price.