Should I price my home below market value? Every homeowner desires of selling their home for a great price and at a premium. At the bare minimum, you need to sell your home and be able to pay off your home loan and cover any closing costs and fees. In addition, it would be ideal to sell your home for a price that allows you to make a profit that you can direct towards a deposit for your upcoming home purchase. To receive offers that enable you to meet your expectations, it might be prudent to strategically price your home below market value. Seems kind of counterintuitive doesn’t it? However, top real estate experts generally agree that overpricing your home is one of the biggest mistakes you can make when selling.
When pricing your home below market value works in your favour
Listing in a seller’s market
In the first place, when you are listing your property in a seller’s market, then you might consider pricing it below market value. Where the demand for homes exceeds the supply, you might want to price your home below market value to encourage multiple bids. This entails that more and more buyers will be vying for fewer houses. This will subsequently result in greater competition for the most ideal and perfect home. As such, pricing your home below market value will make your home appear more attractive to buyers.
After a quick sale
If you need to sell your home quickly then you might consider pricing your home below market value. Pricing your home low is one of the best means by which to attain a quick sale. In the event that housing inventory is low, pricing your home below market value will make your home stand out. If you attract multiple offers this will aid you leverage a deal to facilitate a quick sale. From relocation to other financial reasons there are a host of reasons why you might want to sell your home with haste.
Attract more buyers
If you own a luxury home, then it will probably take longer to sell your home. This is because luxury homes tend to stay on the market twice as long in comparison to their counterparts. With this in mind, pricing your home below market value will help you reduce the waiting period. When your home is priced just right buyers will be hustling to submit their bids. However, if your luxury home is priced too low then you may put off buyers. When a property is priced too low then buyers start to question if there are underlying problems with the property.
Sell without upgrading
In some cases, you may price your home below market value to enable you to sell your home without renovating. Most experts generally agree that pricing your home low is an excellent way to sell a home in need of attention. This strategy is especially effective in hot markets with low housing inventory. Thus, you should price your home below market value to entice buyers to place a competitive bid.