Even with rising interest rates, the real estate market of 2022 continues to favor sellers. This is because of supply and demand. There are still more buyers in the market than there are homes for sale.  However the market is shifting to more of a level playing field for buyers and sellers. Even if multiple buyers may end up competing to buy your home, you should still price your home correctly from the start. Here is why it matters so much:

Dangers of overpricing

ou’ve no doubt heard how housing prices have skyrocketed in the last two years. The pandemic has upended the real estate market. Record-low interest rates have fueled demand, yet sellers have been hesitant to list. As a result, home prices continue to increase.  As a seller, don’t let this news fool you into pricing your home sky high. There are several dangers to overpricing your home including:

  • Your home sitting on the market for too long. When your home is priced more than comparable homes in your area, this can be a red flag to buyers. Your home could end up sitting on the market for much longer than needed.
  • Deterring would-be buyers. Today’s homebuyers are savvy and will know when your home is priced well above the competition. This will be off-putting, thus reducing the number of interested buyers.
  • Sending buyers the wrong message. Pricing your home too high at the beginning may lead to price drops along the way. When buyers see the listing price has been reduced, they may think that something is wrong with the home, or they may think that you are now desperate and try to low-ball you.
  • Losing the deal when the appraisal comes in lower. If your buyers are financing the purchase of the home, then their lender will perform an appraisal. If they determine the home is worth less than the asking price, then it could jeopardize the sale.

How to list at the right price?

When you work with a trusted real estate professional, we will use our expertise and knowledge of the local market to help determine the appropriate listing price. This will help to ensure you sell quickly, have fewer contingencies to deal with, pay fewer out-of-pocket expenses, and net the best profit. If you’re interested in knowing the value of your home, then contact us today!