Right now, the real estate market is a seller’s market. That means that inventory is low, buyers are fighting for what homes are on the market and sellers can get a great return on properties that are sold. While in a normal market, sellers would question whether or not to lower an asking price, in a seller’s market it isn’t uncommon to increase the asking price after listing. When should you bump up the asking price after listing?
Market Conditions Change
In a seller’s market, buyers are known for engaging in bidding wars to get the home that they want to live in. A home that is priced above others can be more enticing than homes priced low for market conditions. If similar properties near your home are selling for higher than your asking price, raising the price could attract more buyers. When prices are rising and inventory is dropping, it only makes sense to adapt your asking price to the change in market conditions.
In a cutthroat marketplace, you want your home to stand out from similar homes on the market or in your neighborhood. Monitor news listings to see that you aren’t underpricing your home. If new listings look identical to your home, but you have more features that add to the value, it might be time to increase your asking price. A 3-bedroom 2-bathroom next door with an identical floor plan should be listed for less than the same home with an in-ground pool.
Have you made any changes to your home after you listed it? Installing new hardwood floors or upgrading kitchen cabinets can mean that your home is worth much more than the price would indicate. Work with your realtor to determine what upgrades are worth adding significant house value. A new countertop isn’t worth changing the asking price for, but a new roof warrants a change.
A Great Appraisal
If you truly aren’t sure how to price your home, you can hire a certified appraiser and use the findings to raise or lower the listing price. While traditionally the buyer would hire an appraiser to justify the price being paid, sellers who don’t invest in an appraisal could be walking away from tens of thousands of dollars if the home isn’t priced properly. Adjusting your home’s price to reflect the real market value is always better than selling your home for too little and losing money.
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Homeland Title & Escrow offers a broad range of title services, including complimentary consultations for first-time homebuyers. To learn more about our services, give us a call at (410) 544-6700.