When determining a price to list your home, you will have two goals. First, you will want to receive the most money for your home. Second, you will want to maximize buyer interest. Setting the right listing price the first time will help you secure an accepted offer.
The first few weeks a property is listed for sale tends to be the most critical period to reach the largest pool of potential buyers. An overpriced home may scare off buyers while a home that is underpriced may create an overwhelming bidding war that no one wins.
Here are the three main factors to consider while choosing the appropriate listing price:
You may have heard that we are in a seller’s market, which means that inventory levels are low, and homes are selling fast. In February of 2019 the Wisconsin REALTORS® Association reported that Wisconsin is down to 3.5 months of inventory, while a balanced market sits at 6-months supply. However, our rural counties are also sitting at a healthy 6-months supply. This is important to take into consideration when pricing your home as there may or may not be a high demand depending on where you live.
If you live in a rural area or your home appeals to a small demographic of people, your pricing strategy will be different from someone who lives in a market where homes are selling at a brisk pace. It is important to speak to your REALTOR® and get an in-depth analysis of your area to see what the inventory level is.
Your REALTOR® will prepare a Comparative Market Analysis (CMA) with the most similar and recent sales and listings to help you measure prices and market activity. A CMA is a tried-and-true method that REALTORS® use to help determine a home’s current value.
When looking at your hyper local market, are home prices heating up or slowing down? Is there a particular type of home that is selling faster than others? Maybe a ranch home is in demand while a two-story is sitting on the market a little longer.
All three of these components are equally important when it comes to pricing your home. Your Shorewest, REALTOR® is also a great resource when it comes to learning about your local market and trends. When you combine these tools, you will be able to come to the right price, the first time.