Even in today’s sellers’ market, setting the right price for your house is one of the most valuable things you can do. Existing home prices nationwide are forecasted to increase by a further 9 - 12% in 2021. This means experts anticipate home values will continue climbing this next year.
How to Price Your House
When it comes to setting the right price for your house, the goal is to increase visibility and drive more buyers your way. Instead of trying to win the negotiation with one buyer, you should price your house so that demand is maximized, and more buyers want to take a look. A fantastic method to achieve this is by running an Auction campaign for your house sale.
As a seller in today’s market, you might be thinking about pricing your house on the high end - while so many of today’s buyers are searching harder than ever just to find a home to purchase. But here’s the thing – a high price tag does not mean you’re going to cash in big on the sale. It’s actually more likely to deter buyers. This is due in large part to the price filtering settings on all of the online property sites. If you price your home outside where buyers are looking, then a significantly lower amount of them will initially see your house for sale, and even less will come to physically inspect it.
Right now, even when there are so few houses for sale, your house is more likely to sit on the market longer or require a price drop that can send buyers running if it isn’t priced in the right range from the very beginning.
When you price it competitively from the start, you won’t be negotiating with one buyer. Instead, you’ll likely have multiple buyers competing for the house, potentially increasing the final sale price. Or, even better, several bidders turning up to bid on Auction day.
The key is to make sure your house is priced to sell immediately. This way, it will be seen by the greatest number of buyers. More than one of them may be interested, and it will be more likely to sell at a competitive price.
Thinking about selling? Reach out to me to talk about your correct price point for your home, get a great marketing plan for your property, and have some fun doing it!
My mission is to help you maximize your exposure and achieve the very best sale price in the current marketplace.
The real estate market is expected to do very well in 2021, with mortgage rates that are hovering at historic lows and forecasted by experts to remain favorable throughout the year. One challenge to the housing industry, however, is the lack of homes available for sale today. Whangarei, like the rest of New Zealand, has an inventory of homes for sale currently at an all-time low - about half of what we’d normally see. That is continuing to put pressure on the market.
What Does This Mean for You?
If You’re a Seller:
Realize that, in some ways, you’re in the driver’s seat. When there’s a shortage of an item at the same time there’s a strong demand for it, the seller is in a good position to negotiate the best possible terms. Whether it’s the price, moving date, possible repairs, or anything else, you’ll be able to request more from a potential purchaser at a time like this – especially if you have multiple interested buyers. Don’t be unreasonable, but understand you probably have the upper hand.
We are seeing fantastic results at our Auctions, because the demand from buyers combined with my great marketing plan for homes is setting them apart from the limited amount of other properties for sale at the same time.
If You’re a Buyer:
Be patient during your home search. It may take time to find a home you love. Once you do, however, be ready to move forward quickly. Get pre-approved for a mortgage, be prepared to make a competitive offer from the start, and know that a shortage in inventory could mean you’ll enter a bidding war. Calculate just how far you’re willing to go to secure a home and lean on us as your expert guides along the way.
The housing market will remain strong throughout 2021. Know what that means for you, whether you’re buying, selling, or doing both. If you are thinking of selling or buying, contact me today!
It’s exciting to put a house on the market and to think about making new memories in new spaces. However, despite the anticipation of what’s to come, we can still have deep sentimental attachments to the home we’re leaving behind. Growing emotions can help or hinder a sale depending on how we manage them.
When it comes to the bottom line, homeowners need to know what it takes to avoid costly mistakes when it’s time to move. Being mindful and prepared for the process can help you stay on the right track when selling your house this year.
1. Price Your Home Right
When inventory is low, like it is in the current market, it’s common to think buyers will pay whatever we ask when setting a listing price. Believe it or not, that’s not always true. Don’t forget that if buyer’s are financing their borrowing, then the banks will look to determine the fair value for your house. The bank will not lend more than what they deem the house is worth.
We will help you set the true value of your home.
2. Keep Your Emotions in Check
Today, homeowners are living in their houses for a longer period of time. Since 1985, the average tenure, or the time a homeowner has owned their home, has increased from 5 to 10 years.
This is several years longer than what used to be the historical norm. The side effect, however, is when you stay in one place for so long, you may get even more emotionally attached to your space. If it’s the first home you bought or the house where your children grew up, it very likely means something extra special to you. Every room has memories, and it’s hard to detach from the sentimental value.
For some homeowners, that makes it even harder to negotiate and separate the emotional value of the house from the fair market price. That’s why you need us to help you with the negotiations along the way.
3. Stage Your Home Properly
We’re generally quite proud of our décor and how we’ve customised our houses to make them our own unique homes, but not all buyers will feel the same way about your design.
That’s why it’s so important to make sure you stage your house with the buyer in mind.
Buyers want to envision themselves in the space so it truly feels like it could be their own. They need to see themselves inside with their furniture and keepsakes – not your pictures and decorations. Stage and declutter so they can visualize their own dreams as they walk around. We can help you with tips to get your home ready to stage and sell.
Today’s sellers’ market might be your best chance to make a move.
If you’re considering selling your house, I’m available to start talking through a plan with you. Let's talk.
Helpful and interesting info from Paul, and Harcourts to help you with your property journey.