Reasons why the right price for real estate matters

Reasons to price a house right

Are you going to sell the home but you don't want to speculate on its price? Learn how to price property right and why it matters so much now.

Why is pricing property right vital?

Why is pricing property right vital?

It's not a secret that every homeowner who comes to the conclusion to sell a house wants to get as much as possible for it. No wonder many sellers hurry to add their homes to the listings immediately and set too high prices for them. It's important to admit that the lack of inventory and high demand for homes allow some buyers to get more than they asked at the very beginning. According to the official data of realtors, almost half of all homes are sold for bigger money than the list price.

However, even despite the current situation, agents consider it important to set the appropriate price for every home for sale. If you prefer to estimate your home too much or too little, it can result in a negative influence on the deal. Consider the following details.

Reasons to price a house right

Reasons to price a house right

When a seller sets a price for his or her home, this person sends a message to potential buyers. Too little amount may hint to buyers that the home condition isn't the best one, so buyers can think there's something wrong with this property even without visiting it. When a home is offered for a smaller price, a seller loses the money he could get and decrease the future buying power.

One more reason why asking too much for a house is not a good idea is the risk to deter potential buyers. If you make this mistake at the initial stage of the deal, you might need to decrease the price later to return buyers' interest in this property. However, the attempt to attract viewers again can be considered as a desire to hide something, and it can prevent people from seeing this home.

It means that right home pricing should be the main goal of every homeowner. You should try to get to the core and set up the price to correspond with the exact real estate market value. It goes without saying that market conditions impact the home price since the more potential buyers there are, the more competitive bidding war it can be. Finally, the price may be higher than original thanks to that. And what is more important, right-priced homes don't stay in the market too much time.

If you want to understand the potential cons of wrong home pricing, consider the following points:

  • Underpriced homes decrease the buying power and make buyers think there's something wrong with a home for sale;
  • Exact market value of homes encourages a bidding war and speeds up the process of getting a deal;
  • Overpriced homes may need a price drop, deter buyers from the purchase, and make themselves spend more time in the listings.

How to price a house right?

How to price a house right?

It's important to consider several factors to price the property in a balanced and right way. Obviously, it's better to get professional assistance from a real estate professional not to make a mistake. The last one will analyze the following points:

  • The average value of property in the same neighborhood;
  • Demand for the property at the moment;
  • The condition of the house and nearby facilities.

Finding a balance between these points will make it possible for a real estate specialist to get the most accurate home price and let a seller receive the best return on the investment made.

Naturally, you can try to cope with this task yourself and try to make a perfectly priced home on the basis of these factors. But you should remember that any mistakes made may lead to the negative consequences described above, so it's better to entrust a professional with this responsible task.

Written by
Andrew Zlobin
CEO/Founder of spotlessagency.com

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