Planning on selling your home? You better price it right.

Planning on selling your home? You better price it right.

If you’re a homeowner looking to sell, it’s important to have a clear understanding of the current real estate market. The housing market can be impacted by various factors such as mortgage rates and economic trends, so it’s crucial to adjust your expectations accordingly. Pricing your house appropriately is key to getting the best deal and attracting potential buyers. Your asking price sends a message to the market and can either help or hinder the sale of your home. If priced too low, you may leave money on the table or raise suspicions among buyers. If priced too high, you may deter buyers and face a longer waiting period on the market.

I have been listing and selling homes in the Minneapolis Saint Paul metro area for over 20 years period this is something that has always been a challenge when listing a home. There’s always a neighbor, friend, family member or coworker that will try to encourage you to price the home higher expecting a buyer to come in right off the bat with a lowball offer. This is not the market with something like that happens. Our inventory is very low still and buyers are willing to pay a fair price.

There are several things that I’ve seen change in the industry over the last five years. Many home buyers now look at the home as a payment. They asked themselves can we afford this payment if we were to buy this house? The actual value or sales price of the home is almost abstract. they view it differently than many home buyers did 20 years ago. The other thing that I’ve noticed in the last several years is there are buyers who will not go above a certain price point when searching for a home. But if they find the home in their price range, they have no problem getting into a multiple offer and bidding above that list price to buy it. I’m not sure if this has something to do with auctions on websites like eBay or if it’s a cultural change. Either way as a home seller you need to be aware of this shift.

This is the result of three separate choices that you make when you list your home for sale.

1. Underpricing your home– you run the risk of leaving money on the table and not getting all of the equity out of your home. Some people do this for a quick sale simply because they just want out. But if you’re not in that position and you would like to get the most value out of your home, it’s obvious this is a bad choice.
2. pricing your home at market value– it attracts the most amount of buyers, you typically will get a higher sales price because there’s a very good chance you will end up in multiple offers. It’s not a guarantee but if you have a beautiful property that’s been well cared for in a nice neighborhood, chances are it will be coveted by home buyers. It will also sell faster as well because you have a lot of interest. I’ve always felt as a licensed real estate agent that this is the best way to go.
3. Overpricing your home– for sellers that choose this option you really risk the sail blowing up in your face. Typically, the house sits on the market a lot longer. When you have to start dropping the price it can send the wrong message to buyers. They start to think what’s wrong with this house and why hasn’t it sold? And lastly and most importantly, it prices out the real potential buyers for your home. They’re looking within their budget and seeing homes in that price range that suit their needs. Unfortunately, your home will not be one of them.

This is where an experienced real estate agent comes in. They have the expertise to find the ideal asking price for your home by considering factors such as local market trends, home values in your neighborhood, buyer demand, and the condition of your house. When it comes to selling your home, turn to Tom Sommers of Coldwell Banker for the best guidance and support. As one of the most respected real estate professionals in the Minneapolis Saint Paul area, Tom is a premier home seller agent. Contact Tom today to get started on the process of selling your home with confidence.