The real estate market has been on fire lately, and that figures to continue well into the summer. New homes are flying off the market, often within days of listing and for more than the asking price. Sellers are unquestionably in the driver's seat right now, but that doesn't mean you can get away with speeding. Here are a few reasons why pricing still matters in a seller's market.
High Prices Can Alienate Buyers
As inflating sales prices continue, it's easy to start seeing dollar signs. If the market says you can get more than your home's value, why not list at that amount?
For one, it alienates potential buyers. Buyers are already at a disadvantage in the current market, and by putting up your home for an exorbitant price above market value, you could be pushing away valuable contenders who don't have as much spending power.
Create a Bidding War
A fair price leaves room for a bidding war – another reason why pricing still matters in a seller's market. Multiple buyers will be in competition for your home – a precious commodity in a low-inventory landscape.
Competition means a steady flow of offers all trying to one-up each other. That is, unless you force the bidding to start at an artificial high point with an expensive asking price. While more offers can make choosing the right one more complicated (the right agent will make it easier, though!), it's often in your best interest to create a bidding war.
Get Off the Market
With such low inventory, it's possible your home will sell fast even if it is overpriced. However, it still remains a risky move. You'll want to lean on your agent's knowledge and market expertise to ensure your home's priced fairly based on several factors, including location, condition, and more.
A boosted price could keep away gun-shy buyers and leave your home dwelling on the market for an extended period. Especially in a market where homes for sale get purchased extremely quickly, you don't want to be the one home that isn't moving.
Want to know more about why pricing still matters in a seller's market? Contact one of our real estate agents!