Having trouble figuring out what an appropriate listing price should be for your home? How do you know how much your home is REALLY worth? You put so much work in to itand it holds so many fond memories. Sadly, you will have to take yourself out the equation for a moment because it’s really the market decides how much a home is worth. So take a moment and a step back when you read this before putting Post-It price tags on everything in your home to calculate a total sum.
Based on a HomeGain.com survey, 76% of homeowners feel their home is worth a few more pretty pennies than what the listing price is. The thing about that is that it’s really the homebuyers who are the one’s who really have a better handle on the market as oppose to the sellers. Buyers are doing a lot of the field work. They’re out there looking on the regular. They’re making offers and they have a general ideal of what the inventory (for their specific needs at least) is.
The real estate market is basically dictated by how much money people are willing to spend on a home. Obviously that doesn’t always directly correspond to what you as the homeowner thinks the home is worth. It’s not unusual if homeowners get sentimental and show feeling towards their living space. When you spend good quality time in your home and have fond memories of the time you may have spent with friends and family, it’s no wonder one would probably think the home is worth more than the listing price.
Are you curious as to when the best time is to sell your home? The first few weeks after the property is listed are the most crucial. Buyers are just sitting there waiting with anticipation for the perfect home so they can snatch it up and snag it for themselves. Similar to how renters sit there refreshing the the screen for places on Craigslist. When you’re dying to find the right home, you’ll sit there all night because god forbid you go to sleep for five minutes and poo poo an opportunity to find the perfect home.
In order to really grab the attention of homebuyers, you need to make sure that your home is priced according to the current market. No one wants to feel like they’ve been had and that they’re paying everything just short of a first born for a property that isn’t priced where it should be.
In some states housing prices are still falling, and those looking to buy don’t want to end up being made to look the fool by paying more than the determined market worth. In a city like Boston where there currently are strong sales, you will definitely see multiple offers on homes, especially since the inventory isn’t nearly as high as the demand. The multiple offer situation can be a stressful one and can even cause some to back down entirely. Mostly though, people are willing to tough it out until the bitter end and fight for what they really want.
In order to assist you with understand listing prices, it is important to understand how the market works and how these prices get determined. Detailed research and market reports are conducted to examine general trends and outliers (New Q2 Market report coming soon).
If you are selling your home, don’t inflate your asking price to something you feel would be far more appropriate just because of your sentimental attachment to it. If the demand is there, you are sure to get plenty of offers, and quite possibly receive the price you are looking for through the offer process. The market will certainly help you understand where and how your home fits into this real estate puzzle. If however the market suggests that value of your home is depreciating, sometimes it makes more sense to chose a lower price point that will help create more buzz among potential buyers. Either way, you can create a win win situation for yourself, you just have to play smart.
Don’t forget that if you’re unsure of how to go about this whole process, we’ve got plenty of exceptional and experienced real estate professionals for you to choose from. They know the Boston areas, have studied these market reports and can help create the ultimate winning strategy. We’ll help spell it out for you whether you’re buying or selling.