If you’re getting ready to sell your home, you’re in luck because throughout the nation the housing market is on the rebound. Over the past year selling prices have increased and the inventory of distressed properties is decreasing, meaning that sellers wanting to complete a traditional sale don’t have to worry about the fear of a foreclosure or short sale listing trumping theirs. Just because the number of distressed properties selling for a lower price is dwindling, however, doesn’t mean that sellers should increase the listing price of their home.
While it may be tempting to overprice your home simply to see how much you can get out of it or how much money you can make, it is extremely important that you don’t. Did you know that if you overprice your home it can not only take longer for it to sell, but can also earn you less money when compared to pricing it in relation to other comps from the start? Many homeowners think that it’s a good idea to list high and then come down on the price during negotiations with the buyer while still making some money. This generally doesn’t work, however as many potential buyers won’t even consider looking at a home if it is overpriced when compared to other comparable listings.
A few months ago Trulia released a report stating that while home values have increased by at least 10% since this same time last year, a startling trend is occurring. Homeowners are still increasing the asking prices on their homes, which, again, is highly inadvisable. Because of increased property values, the number of homes coming on the market is rising, so buyers will have more inventory to choose from. Even though it’s currently a seller’s market, if you don’t price your home appropriately from the get-go, you could end up with a house that sits on the market with little to no interest from buyers for quite some time.