In any real estate market, it’s always important to price your home appropriately. Even over the past few years, when houses were all seemingly selling over the asking price within days of hitting the market, you couldn’t sell your house for more than buyers were willing (or able) to pay. But there was a little more room for error when listing a little too high. However, the market has shifted, buyers are nervous and you must pay closer attention to your asking price.
A Realtor.com article reports, a recent survey revealed that 51% of buyers backed out of contracts last year. Some of the reasons buyers gave for changing their minds have nothing to do with the home itself:
• Buyer’s financing fell through due to rising interest rates
• The buyer lost their job
• The buyer took on too much debt before closing
But some of the factors have to do with the sale such as:
• A low appraisal
• Inspection issues
You can’t control how much buyers are willing to pay for a house, how much other sellers are asking for their house, or how much an appraiser will say your house is worth. All you can do is be aware of current pricing trends and be willing to adjust yours if needed. So how to make your house the one that buyers pick? Here are some things you can do:
Be aware of other sellers’ pricing. What other houses would a buyer interested in your house consider? Keep a close eye on the prices of competing homes on the market.
Also pay attention to how much houses recently sold for, because those are what appraisers use to come up with their valuation. If you based your listing price on data from months ago, and houses closed for less since then, it could affect how an appraiser values your house. When necessary be willing to negotiate and this is where your choice of an experienced Realtor will pay off.
If you opened escrow with a happy buyer, but now find the appraisal is low, you probably should consider negotiating the difference.
The Takeaway:
While sellers always need to be careful about pricing their house appropriately, the past few years were more forgiving if you made a mistake. But the market has shifted, and some sellers find it more difficult to find and keep a buyer.
