3 Pricing Strategies in a Seller’s Market
Real estate markets across the country are experiencing a strong seller’s market right now. For potential sellers, this may be a golden opportunity to get top value for their property. While it may be tempting to aim for the sky when setting the listing price, that may not be your best option.
Here are 3 pricing strategies to consider before deciding on your asking price.
1. Listing at Market Value
Buyer’s love “realistic sellers.” After considering the market data for your area, choosing to list at the current market value can attract the right buyer and encourage a solid offer or two. Typically, this results in a full-price offer with straightforward terms.
2. Listing High
It is always tempting to list ahead of the market, especially in a seller’s market. This strategy is risky and can mean you waste valuable time by sitting on the market with little interest. Even in a strong sellers’ market, buyers will shy away from overpriced listings. If listing above market value, experts suggest not higher than 5-7% higher.
3. Listing Low
Listing below market value will attract attention. The goal of this strategy is to encourage a bidding war that results in a sales price over market value. This works best for homes in turnkey condition and can backfire if the home is unappealing and you receive low or no offers and must adjust the price again.
A seller’s market presents opportunities. Working with your agent, discuss the options and trends in your local market to get the best offer and terms.