Everyone knows the story by now. The housing market in Washington, DC and surrounding areas is red-hot. Homes are selling for records prices all over the city.
But even though there’s a big buyer demand for homes in today’s low inventory market, it doesn’t mean you should price your home sky-high when you’re ready to sell. I’ve seen beautifully renovated homes in desirable neighborhoods sit on the market for months with little to no sales activity. Here’s why making sure you price it right is key to driving the best price for the sale.
If you’ve ever watched the show “The Price Is Right,” you know the only way to win the game is to be the one to correctly guess the price of the item up for bid without going over. That means your guess must be just slightly under the retail price.
When it comes to pricing your home, setting it at or slightly below market value will increase the visibility of your listing and drive more buyers your way. This strategy actually increases the number of buyers who will see your home in their search process. Why? When potential buyers look at your listing and see a great price for a fantastic home, they’re probably going to want to take a closer look. This means more buyers are going to be excited about your house and more apt to make an offer.
When this happens, you’re more likely to set up a scenario with multiple offers, potential bidding wars, and the ability to drive a higher final sale price. At the end of the day, even when inventory is tight, pricing it right – or pricing it to sell immediately – makes a big difference.
The Downside of Overly Aggressive Pricing
Here’s the other thing: homeowners who make the mistake of overpricing their homes will eventually have to lower the prices anyway after they sit on the market for an extended period of time. This leaves buyers wondering if the price drops were caused by something wrong with these homes when in reality, nothing was wrong, the initial prices were just too high.
When this happens in DC, homeowners often resort to renting out their homes for a year or more, hoping that home prices will continue to appreciate. Real estate can be a great investment, but was your goal to move and begin the next phase in your life or was it to become a landlord?
If you’re thinking about selling your home this year, make sure you have a real estate professional on your side to help you properly price your home and maximize demand from the start.
If you’re curious about the current value of your home, click here to an free, instant estimate.
Ready to make a move today? Call or text me to set up a time to chat and learn about your options.