Dione Irwin RE/MAX House of Real Estate

Why Correctly Pricing at Market Value is Essential

Olivia Irwin
Tuesday, May 30, 2023
Why Correctly Pricing at Market Value is Essential

Why Correctly Pricing at Market Value is Essential

 

Listing with a realtor may seem unnecessary, but one valuable skill that real estate agents bring to the table is an extensive knowledge of where the market is at in an area at any given time. Pricing correctly at Market Value is the most productive way to sell in terms of timeline as well as earnings. However, understanding your current Fair Market Value and how your home fits within it accurately can be difficult to do without the knowledge of a real estate expert.

 

It can be tempting to slightly overprice your home in order to leave room for negotiation, or in the hopes that it will end up selling for that higher asking price. Over half of all homes are listed about 5-10% over Market Value. Unfortunately, this does not influence buyers to pay more for a home, and it tends to leave houses on the market for longer than desired. Not only does this make your house seem less desirable to buyers, who tend to be wary of homes that are on the market for longer than average, it is an inconvenience to keep your home in showing condition for longer than you had expected and planned for. 

 

On the other end of the spectrum, some sellers choose to list below Fair Market Value. There are a few reasons for this. Sometimes, sellers may be motivated to sell quickly, listing low does tend to bring in offers quickly and low-priced houses do sell faster. Some people find that listing below Market Value gives them the advantage of multiple competing offers that can drive the end selling price up slightly above the asking price. Make sure that you fully understand what listing below Market Value can do to benefit you, and be cautious to ensure that your agent is suggesting this tactic to benefit you as their client.

 

Dione Irwin’s team of professionals is required to have the ability to analyze the market for your home and specific needs, and explain this analysis to you in a clear and concise way. If you would like to view a more in-depth report on why accurate pricing is conducive to selling efficiently, check out this link for FREE access!


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