When selling your home, we will have an in depth conversation about all aspects of the sale, including where you will be going next, the timelines involved, and of course, the PRICE! There is a major misconception among sellers and even some agents who assume that it is ok to price a home above market value and then just reduce the price if necessary. The problem with this is that the FRIST TWO WEEKS are the most important and critical to getting your home sold. If you list your home for sale higher than market value and reduce the price after it sits for a month, you may end up selling the home for less than you would have if you had priced the home at market value to begin with. The article below from KCM talks about this in even more detail:
2 Things You Need to Know to Properly Price Your Home
In today’s housing market, home prices are increasing at a slower pace (3.7%) than they have over the last eight years (6-7%). However, they are still are above historical norms. Low supply of listed homes and high demand from buyers has pushed prices to rise rapidly.
In the mind of the homeowner, annual home price appreciation over 6% has become the new normal. This becomes a challenge when a homeowner looks to refinance or sell their home, as the expectation of what the homeowner believes the home should be worth does not always line up with the bank’s appraisal.
Every month, the Home Price Perception Index (HPPI) measures the disparity between what a homeowner seeking to refinance their home believes their house is worth and what an appraiser’s evaluation of that same home is.
Over the last five months, the gap between the homeowner’s opinion and the bank’s appraisal has widened to -0.78%. This is important for homeowners to note, as even a 0.78% difference in appraisal can mean thousands of dollars that a buyer or seller would have to come up with at closing (depending on the price of the home).
While the appraisal gap widens, another trend is also becoming more common.
According to realtor.com, “the share of homes which had their prices cut increased by 2% compared to last year”. Thirty-seven out of the 50 largest US housing markets saw an increase in overall price reductions.
In today’s market, you need an expert agent who can help price your house right from the start. Homeowners who make the mistake of overpricing their homes will eventually have to drop the price. This leaves buyers wondering if the price drop was caused by something wrong with the house. In reality, nothing is wrong- the price was just too high!
If you are planning on selling your house in today’s market, let’s get together to set your listing price properly from the start!
Providing market value for your home is just one of the many benefits that you get when partnering with Mike Gunsallus Atlanta Real Estate.