In a seller’s market like the one we have now in the Tri-Cities, homeowners are sometimes tempted to think they can squeeze an extra $5,000 – $10,000 (or more) out of their home when they put it up for sale.
That’s a mistake. That’s not how it works.
What I think is happening in a situation like that is that the seller is assuming that appreciating home values also gives them the freedom to overprice their home. Some home owners justify overpricing their home by telling themselves (and their Realtor!) something like “we can always lower the price later” or “we need some wiggle room.”
But the reality is that a house is always worth what a house is worth regardless of the market that’s surrounding it, whether it’s a seller’s market or a buyer’s market. In other words, if your home is worth $300,000, you shouldn’t list it for $310,000 just because we’re in a seller’s market.
If you do, chances are strong that your home will sit on the market, unsold, for longer than similar homes. Buyers will start to wonder what’s wrong with it — why hasn’t it sold? They’ll assume something’s wrong with your home, when really the house is fine … you just priced it too high.
A Better Way To Price Your Home
Instead of overpricing, I’m a believer in pricing a home exactly at what it’s worth — and sometimes even a little less, especially if my seller is in a hurry to sell.
Pricing your home at or slightly below market value will
- increase its visibility with buyers who can afford and would want to buy the home
- create a sense of “this home is a great deal” when potential buyers find it online
- get more buyers to want to see the home in person
- increase the chances that you’ll end up on the receiving end of a bidding war with multiple offers
When you price your home correctly or even a little under market value, more potential buyers will want to see it up close — we all like getting a deal, right? They’ll be more excited about the home and more likely to make an offer — and one or more of them might even be for above your asking price.
How’s that for a win-win seller situation?
Key Takeaways
Even when inventory is tight like it is now in the Tri-Cities, you still have to price your home according to its market value. You don’t get to overprice your home just because we’re in a seller’s market.
If you price it correctly — at or even slightly below market value — you’ll get more buyers excited about the home and increase your chances of creating a multiple-offer situation with offers above your asking price.
And remember, don’t rely on computer-generated estimates to determine what your home is worth; Tri-Cities Zestimates are notoriously wrong. If you’re thinking about selling, get in touch anytime and we’ll provide you with a professional home value estimate at no cost to you, and with no obligation to hire us to sell your home.
(Photo by NeONBRAND on Unsplash)
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