Monday, November 23, 2020 / by Brad Brethouwer
The Key to Pricing Your Home in a Seller’s Market
How do you price your home in a seller’s market?
Currently, inventory in our market is very low. We’re seeing a lot of homes sell quickly either at or above their asking price. More and more though, we’re noticing a trend of sellers getting too greedy and asking too much for their property. It’s getting to a point where buyers are finally putting their hands up and deciding not to spend that kind of money on those sellers’ homes. Those homes then end up sitting on the market until they have to reduce the price.
It’s okay to test the market, and by “test” I mean only for a period of seven to 10 days or so—not 30 or 60 days as some sellers are doing. Seven to 10 days is long enough to know if you’re going to get a certain price or not because if the demand isn’t there, your home is priced too high.
When we price a home for our clients, we compare it to similar properties in the same area to get the best estimate.
“If you hit the right price point, your home sale will blow up. ”
For example, I was helping a client just last week price their home and noticed that the pricing trend for that home was around $235,000. I suggested that they list their home at $239,900. In my opinion, in this market, that price will cause a bidding war for that home and push the price up to $245,000 or even $250,000.
If you price your home too high and it sits on the market too long, though, I guarantee it will cost you money. I see this happen all the time—people price their home too high to leave room for negotiation. The market doesn’t work that way, though. Buyers look in a certain price range, and if you hit the right price point, your home sale will blow up.
If you have any other questions about how to price your home or you’re looking to buy a home in our market, don’t hesitate to reach out to me. I’d love to help you.
