Most sellers seek the highest possible price and the shortest possible selling period. It may be challenging for sellers to compete in a competitive market. In the real world, goods move rapidly, yet bidding battles drive costs.
Bidding wars and rising home prices result in poor valuations. Given the preceding circumstances, how should you price your home for sale in today’s volatile market?
1. Prevent yourself from receiving poor evaluations
In most instances, a buyer and seller cannot agree on a price for a home if the appraised value is lower than the agreed-upon sale price. The price differential must be made up if the buyer or seller submits a greater or lower offer.
You can protect yourself from a low assessment by choosing buyers with a substantial down payment or drafting buyer contracts that guarantee the sales price regardless of the evaluated value. Higher down payments reduce the lender’s exposure to risk and increase their chances of success. It is common for appraisals to be low while prices are rising substantially. Comparable sales, or sales of nearby and similar properties, are utilized by appraisers to assess a property’s value.
2. Accurately appraising a property
To evaluate potential offers, you must know the current market value of your home. Examine previous sales in your community to estimate how much your home may cost. You can calculate your home’s current market worth using the information provided below:
- Recently sold homes within one mile of your current residence that have square footage that is 20% or less of your existing home’s square footage.
- Your real estate agent can use MLS data to provide a Comparative Market Analysis (CMA). In addition to your property’s previous sales and listings, this data includes information about surrounding houses now for sale and micro market trends.
A CMA and the information you have gathered about your home’s current market value may be helpful resources for your realtor.
To sell your home, you should set a reasonable asking price.
3. Create a favorable first impression
When selling a home, making a good first impression is vital. Most prospective buyers will be interested in your home during the first two weeks on the market. You must price your home appropriately to attract serious buyers and encourage them to submit bids. When you first list your home for sale, many prospective buyers will pass it over if the asking price is too high. If you lower your pricing amid a boom while the market thrives, many prospective buyers will have already found alternatives.
Consequently, the pandemic outbreak has dramatically subsided. As a period of correction approaches, home prices are increasing steadily. In other words, it would be best if you consult a real estate agent to find the best time and price to sell your property.
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