Why Asking Price Matters
There seems to be a home in every neighborhood that stays on the market forever. Perhaps you have driven past it before and thought, “is there something wrong with that place?” There are a lot of factors that contribute to this, but the biggest is pricing. Knowing the right asking price of your home is imperative. It is what will make your listing sell efficiently. When your home is marketed at a competitive rate, not only will there be offers coming in left and right, but they will be close to the asking price. That is every home seller’s dream!
The sweet spot to sell a home is in the first 30 days of it being on the market. Homes over the ten percent margin of their worth miss that sweet spot and need to be reevaluated. Here’s where a problem starts to creep in. When those overpriced properties eventually lower their asking price, they usually sell for less than market value.
The real question here is this: how do you figure out a fair asking price? There are many contributing factors. For example, the state of the current market or the history of sales in the neighborhood. The goal is to get as much for the property as possible while making sure the asking price is comparable to similar listings. We understand this difficult tiptoe!
Now, let’s talk about markets. We have seen the real estate market at some of its strongest and weakest points in the last fifteen years. Your willingness to challenge the market goes hand-in-hand with your asking price. If you feel the market is in your favor, you may try setting your listing higher than comparable homes. However, as was mentioned earlier, that may lead to your home taking longer to sell.
We get it – you probably do not keep close track of property listings, current home values, and the state of the real estate market. This is where having a realtor comes in handy. Their entire job is making sure they stay up to date on neighborhoods, current home listings, and the market. When you find the right realtor, you are getting the best source there is to help you sell your home fast and for as much money as possible. Say goodbye to home selling stress!
We have talked a little bit about market contributors. Let’s cover that more in depth.
It probably comes as no surprise that some neighborhoods are more desirable for home buyers than others. Depending on local attractions, quality of schools, and more, your property may be just what potential buyers are wanting.
Of course, the actual property, itself, has value. If your listing is in good condition, has up-to-date appliances, and quality maintenance systems, your property will be worth more.
As was mentioned earlier, it is important to list your home at a competitive rate. This means your listing should be comparable to similar homes in your neighborhood;
Another key factor in determining the value of your home is the state of the market. This is largely affected by the ratio of buyers to sellers. Perhaps you have heard the phrase “seller’s market” or “buyer’s market” tossed around. If there are a lot of people looking to buy a home compared to the number on the market, it is a “seller’s market.” The inverse is true of a “buyer’s market.”