How much should you price your home to sell in this hot market?

How much would you price your home at in a hot seller’s market?

So we continue to read on paper that we are in the “Seller’s market” for the last few months – 

What “seller’s market” means, is that there are more demand (buyers) than the supply (homes on the market), which usually favors sellers in a negotiation of selling/buying a home. 

If you are thinking of selling your hone in his market condition, how much would you price the home at?

First thing you want to do is have your realtor to prepare a CMA (Comparative Market Analysis), which will indicate the suggested sales price of your home based on the data of sold, active, expired or pending homes, particularity in your community. 

You will most likely use this suggested sales price as an indicator to decide the selling price of your home. 

Some sellers may feel that it is possible to add on 10%… 15%… or even 20% (?!) on top of the market price, because ‘we are in the seller’s market’.

Because buyers are limited with number of homes they can choose from –  they may be willing to pay much higher price… would you think?  

Again, CMA is the most trustful guideline of right price of a home – whether if it’s a seller’s market, or buyer’s market.

With that said, pricing your home way above market price (OR below market), does come with several risks. 

Common examples: 

  • Sellers may not be able to capture as many buyers as they could.  It could close doors to buyers who are actually within the budget range of market price.  
  • Seller would face difficulties or complications during negotiation due to appraisal gaps (either seller or buyer will have to come up with additional cash in order to cover the appraisal gaps; there are several ways to minimize the risk on this though.) 
  • Seller will end up having the home on the market a lot longer than it should. (Remember, your home price is being compared to other houses  that are on the market, or the ones that sold price). 

Pricing your home at the right price based on intensive market data & Comparative Market Analysis, specifically focused in your area, as well as getting the right advice and suggestion from your realtor, is the best way for you to sell a home at highest price, in shortest time possible.  

So how do you find out the reasonable range of our home price?

Contact me today to find out in more details! 😊

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