Pricing Your Home for Sale When Everyone Else is Overpriced
The housing market has been an exciting landscape for sellers in recent years, with prices reaching historic highs and buyers benefiting from low interest rates. However, the current market is drastically different in many areas of the country, and if you’re considering selling your home, you might be wondering how to price it correctly when other sellers around you are still pricing their homes too high.
1. Analyze Recent Sales, Not Just Listings
When pricing your home, it’s crucial to look at recent sales rather than just current listings. Many sellers may still be listing their homes at inflated prices, but the homes that actually sell often go for less. By focusing on the homes that have sold, you can get a more accurate understanding of what buyers are willing to pay in your area. Pay close attention to how the market has been trending—are prices rising or declining month over month? This data can help you determine whether you should price higher or lower than recent sales prices.
2. Understand Market Trends
Beyond just looking at recent sales, it’s important to understand the overall trends in your area. Are homes selling at or above list price, or are they being discounted? How much of a difference is there between the listing price and the final sales price? This will give you a better idea of how to price your home competitively, without overpricing or underpricing it for your market.
3. Consider a Professional Appraisal
If you live in an area with few recent comparable sales, like markets with many custom homes, it might be worth investing in a professional appraisal. Appraisers are trained to assess the unique features of your home and compare it to recent sales. The appraisal process typically costs a few hundred dollars but can offer valuable insights, especially if your home has special features such as a stunning view, a large lot, or recent remodels. A professional appraisal will give you an unbiased, expert opinion of your home’s market value.
4. Trust Your Real Estate Agent
Finally, rely on the expertise of an experienced real estate agent. Even though it may seem tempting to price your home similarly to others around you, a skilled agent will help you avoid overpricing your home in a competitive market. They’ll have the knowledge of current trends, comparable sales, and local market conditions to guide you in making the best pricing decision. Setting a realistic price will help you sell your home quickly while maximizing the price you can achieve.
Conclusion
In today’s shifting housing market, pricing your home correctly is essential to selling quickly and at the best price possible. By analyzing recent sales, understanding market trends, considering a professional appraisal, and relying on your agent’s expertise, you can avoid overpricing your home and position it competitively in the market. Setting the right price from the start will help you achieve a successful sale in a market that is constantly evolving.
Kate Lang, Lang Realty Co
Realty One of New Mexico
9674-3 Eagle Ranch Rd NW
Albuquerque, NM 87114
C: 505.554.6067
O: 505.883.9400
W: langrealtyco.com
