What some experts are saying about house Pricing
In today’s 2020 real estate market, setting the right house pricing is one of the most valuable things you can consider. In other markets, like a buyers market House Pricing is even more important.
Are price increases still coming? Looking at the U.S. Economic Outlooks by the National Association of Realtors, existing home prices nationwide are currently being forecasted to increase 4.7% in 2020 and 4.1% in 2021. This means real some estate experts anticipate home pricing will continue climbing into next year. Today, low inventory is largely keeping prices from depreciating. Danielle Hale, Chief Economist at realtor.com, notes:
“Looking at the sheer number of buyers, low mortgage rates, and limited sellers, the strength of home prices–which are now growing at the highest pace since January 2018–makes sense.”
Some real estate professionals like this strategy when it comes to pricing your home, the goal is to increase visibility and drive more buyers your way. Instead of trying to win the negotiation with one buyer, you should price your house so that demand is maximized and more buyers want to take a look.
How to Price Your Home
Some professionals believe, as a seller, you might be thinking about pricing your house on the high end while so many of today’s buyers are searching harder than ever just to find a home to purchase. You’re thinking, higher price, greater profit, right? But here’s the thing – a high price tag does not mean you’re going to cash in big on the sale. It’s actually more likely to deter buyers and have them looking at the houses your neighbors are selling instead.
Even today, in a sellers market, when the advantage tips toward sellers because there are so few houses for sale, your home is more likely to sit on the market longer or require a price drop that can send buyers running in the other direction if the house pricing isn't just right.
A Trusted Real Estate Professional Will Help
It’s important to make sure your house is priced correctly by working in partnership with a trusted real estate professional. Some professionals feel when you price it competitively, you won’t be negotiating with one buyer over the price. Instead, you’ll have multiple buyers competing for the home, and that’s what ultimately increases the final sale price. This totally depends on the situation, does your home fit the demographics of the neighborhood? Meaning are you selling a 1200 square foot starter home in a neighborhood that is primarily families of 4 or more? Or did your home get improved over what the neighbor norm is? These are all things we can help with!
Some professionals believe the key is making sure your house is priced to sell immediately. That way, it will be seen by the most buyers. More than one of them may be interested, and your house will be more likely to sell at a competitive price.
Think about the whole picture with house pricing, your home value, condition of home, age of systems (a/c, water heater) repairs needed, maintenance, neighbors, how well it is photographed, does is fit the current décor styles?
If you're thinking about listing your house this fall, let’s discuss how to price it right so you can maximize your exposure and your return.