Many homeowners are struggling to price their homes in this unpredictable real estate market. With interest rates rising post-pandemic, the housing market is finally cooling down. Experts report that the pending prices of homes dropped 8.6% in June.* Sellers may be hoping they can match comparable home prices from their neighborhood from the past year, however, those data points are no longer an accurate depiction of the market. Still, there is a strong demand for homes.
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Properly pricing your home impacts how long the listing stays on the market, negotiations and ensuring you get paid the maximum value the home is worth. There are several variables to look at when determining how to price a home, such as the city or neighborhood you are selling in, square footage, the number of bedrooms and bathrooms, curb appeal and the age and condition of the home.
The top recommendation is to hire an expert in the industry, a real estate agent. The current housing market is experiencing fluctuating prices and having a real estate agent guide you through these changes is key. It can be easy to personally research comparable homes in your area and you may formulate a price that you believe seems fair, but there are numerous other factors that can change pricing. Some homes have different features and upgrades that can allow for a higher sale price while others may be lacking a particular feature that could lower a sale price. A real estate agent will have access to all details of a home and draft a sales price that doesn’t sell you short or seem unreasonable to knowledgeable buyers. Working with a real estate agent will also lend an experienced hand in negotiating with a buyer and their agent.
When looking at comps, or homes sold nearby, research how much they were sold for, but more importantly when they were sold. Home prices have declined in the last few months due to inventory and interest rates rising. If you work with a real estate agent, they’ll be providing you with a comparative market analysis, which includes home details, days on the market, and final sale price.
Find the top selling points of your home’s location and factor it into your selling price. Selling points could include nearby schools, community parks and programs, distance or convenience to shopping and entertainment centers, crime rates, proximity to busy roads or freeways and so on.
Properly staging your home is another important way to make good first impressions for potential buyers. It can also lead to a faster sale. Buyers touring the home should be able to easily imagine themselves living there. This is also the right time to showcase the best features of your home. You can either hire a staging service or your real estate agent may be able to help.
The Phoenix Metro housing market is expected to continuously change over the next months and if you plan on selling, be open to the ever-changing real estate climate. Create an offer that aims to sell high yet is still competitive.
*Source: Click here
Author: Rich La Rue is the Designated Broker for HomeSmart Phoenix, the flagship brokerage operation in the HomeSmart system. La Rue has more than 38 years of experience in real estate sales and management from real estate offices to regional and national operations. La Rue began his career in real estate in 1983 in Phoenix, Arizona as a sales associate. In 1986 he earned his Arizona Real Estate Broker’s License. He also holds a California Real Estate Broker’s license, GRI, CRS, and CRB designations as well as the e-PRO and the SFR certifications. For more information, visit www.richlarue.com.
