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.

 

  1. 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.

 

  1. 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.  

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