Pricing Your House Right Still Matters Today
While this isn’t the frenzied market we saw during the ‘unicorn’ years, homes that are priced right are still selling quickly and seeing multiple offers right now. That’s because the number of homes for sale is still so low. Data from the National Association of Realtors (NAR) shows 76% of homes sold within a month and the average saw 3.5 offers in June.
Martha's Vineyard is no exception to the prevailing trend. By the end of June 2023, our inventory has dwindled to a mere 127 properties available for sale, a stark contrast to 2019 when we had 312 properties on the market during the same period. This persistent shortage of homes continues to drive demand and prop up prices. Nevertheless, multiple offers are primarily being received for Martha's Vineyard properties priced in accordance with comparable homes. Sellers who attempt to list their homes above the market value are finding their properties languishing on the market. In the current savvy buyer's market, potential buyers are unwilling to overpay. A different scenario unfolded during the pandemic, characterized by incredibly low interest rates that fueled a different market sentiment altogether.
To set yourself up to be in the right position to receive multiple offers and get the highest price possible, you need to rely on an agent. Only an agent has the expertise needed to find the right asking price for your house. Here’s what’s at stake if that price isn’t accurate for today’s market value.
The price you set for your house sends a message to potential buyers.
Price it too low and you might raise questions about your home’s condition or lead buyers to assume something is wrong with it. Not to mention, if you undervalue your house, you could leave money on the table, which decreases your future buying power.
On the other hand, price it too high and you run the risk of deterring buyers from ever touring it in the first place. When that happens, you may have to do a price drop to try to re-ignite interest in your house when it sits on the market for a while. But be aware that a price drop can be seen as a red flag for some buyers who will wonder why the price was reduced and what that means about the home.
A recent article from NerdWallet sums it up like this:
"Your house’s market debut is your first chance to attract a buyer and it’s important to get the pricing right. If your home is overpriced, you run the risk of buyers not seeing the listing . . . But price your house too low and you could end up leaving some serious money on the table. A bargain-basement price could also turn some buyers away, as they may wonder if there are any underlying problems with the house."
Think of pricing your home as a target. Your goal is to aim directly for the center – not too high, not too low, but right at market value.
Ensuring a fair pricing strategy for your Martha's Vineyard house based on prevailing market conditions can significantly boost your chances of attracting a larger pool of interested buyers. With increased interest, the likelihood of receiving multiple offers also rises, elevating the potential for a successful sale. Moreover, appropriately priced homes tend to sell quickly, a desirable outcome for any seller.
Martha's Vineyard currently experiences the highest demand for homes under $1,500,000. However, determining the right price for these properties can be quite challenging. Factors such as location, age, and size necessitate careful examination to arrive at a well-justified price point.
One notable observation is that homeowners who have resided in their properties for an extended period may not be fully aware of what buyers are seeking in the present market. Therefore, seeking the guidance of an experienced Martha's Vineyard real estate agent becomes crucial in navigating these intricacies.
By working with a knowledgeable professional, you can gain valuable insights into Martha's Vineyard market trends and buyer preferences. This collaboration ensures that your home is priced competitively and positioned to attract the right audience, ultimately leading to a successful and expedient sale.
To get a high-level look into the potential downsides of over or underpricing your house and the perks that come with pricing it at market value, see the chart below:
Lean on a Professional’s Expertise to Price Your House Right
So why is an agent essential in finding the right price? Your local agent has the skill and the insight necessary to find the market value of your home. They’ll use their expertise to determine a realistic listing price by assessing:
- The prices of recently sold homes
- The current market conditions
- The size and condition of your house
- The location of your house
Pricing your house at market value is critical, so don’t rely on guesswork. Let’s connect to make sure your house is priced right for today’s market.