Pricing your home for sale is complicated. You want the best price, but you want it to move quickly. Those are the priorities for sellers and their agents. Pricing decisions can be even more complex in a hot market. There may be a temptation to overprice when we hear sensational stories about listings nearby. On the flip side, some sellers try underpricing as a strategy to spark interest. In fact, neither of those paths is the way to go. The key to a successful sale is finding the sweet spot and listing at just the right price for your market. That’s why hiring an experienced seller’s agent is crucial.
Can You Overprice a Home In a Seller’s Market?
We’ve all heard tales of bidding wars and crazy cash offers in the current market. But you can indeed overprice your home even in a seller’s market. If you price your house too high, it can stagnate– even in a hot market. If your house sits in a fast-paced market, buyers will assume there’s something wrong with it and hesitate. You could wind up with a lower price than if you had priced it correctly at the outset. Overpricing also means wasting time on the market. In Northern Virginia, there are signs that the market may be cooling down, so time is of the essence. Finally, buyers often look for homes in a price range to start with, even if they’re willing to bid higher. If you overprice from the start instead of waiting for bids, you can easily miss buyers who might be perfect for your home.
What Are the Dangers of Underpricing?
Some buyers see underpricing as a strategy in a hot market. It’s designed to spark interest and possibly start a bidding war. But underpricing can come back to bite you. It’s another signal to buyers that there may be something wrong with the house. Perception means so much in real estate. Underpricing means you might wind up with significantly less profit than if you’d listed the house at the right amount.
How Do Real Estate Agents Determine Listing Price?
An experienced seller’s agent has her finger on the pulse of the market. Pricing a listing takes experience, skill and instinct. It’s not as easy as plugging numbers into an algorithm.
Before listing your home, your seller’s agent prepares a Comparative Market Analysis (CMA). Her report will examine:
- Sales prices for homes of a similar size, style, and age.
- Recently sold homes in your area.
- Homes that are currently on the market.
She’ll give you the price and explain how she came up with it, along with her plan for marketing your home. Every home is different, and many variables can impact the price. That’s why it’s essential to take care of minor repairs and stage your home before listing.
Should I Get an Appraisal Before Listing?
Some sellers ask about a third-party appraisal–getting an independent company to assess the value of your home. For sellers, getting an assessment too early in the process can lead to undervaluing their home, especially in a hot market. An independent appraisal doesn’t consider all the factors that go into your agent’s CMA. As Realtor.com puts it: “appraisal value isn’t always the same as market value.” Instead, it makes more sense to work with an experienced and trusted seller’s agent who really understands the market. Your buyers may need an independent appraisal for their mortgage company. But there’s generally no need for a seller to spend the extra money when they have a great agent.
Finding the Sweet Spot with Yvonne Holland
Yvonne Holland has made a career of helping sellers find the sweet spot for their listings. Her goal is always to help sellers get the best price in the shortest amount of time–from tough times to sizzling markets and everything in between. Identifying the appropriate price requires experience, skill and savvy. As an Accredited Staging Professional, Yvonne can help address the little things that can bring a significant boost in price. With a strong sense of the market developed over two decades and a keen eye for detail, Yvonne is the perfect agent to help you zero in on that just-right price.
