In 2021, we saw record-breaking home sales and a 16.9% increase in home prices across the country. What does that really mean?
When you’re diving into a seller’s market, it’s easy to assume that you’re going to sell your home at a major profit. However, before you set your sights on a high figure, you need to understand how home pricing works.
The good news is, there’s a very good chance that your home is worth more now than when you bought it. However, it’s going to take research, time, and professional evaluations to get a clear sense of how high you can actually price your home.
Read on to learn more about pricing your home for sale the right way.
What Creates a Seller’s Market?
The real estate market is complicated and there are tons of influences at play. A seller’s market, like the market we’re currently experiencing, is one in which the odds are in a seller’s favor rather than a buyer’s.
Simply put, seller’s markets occur when the supply (homes for sale) is lower than the demand (buyers looking for a property). High demand may be influenced by low mortgage rates, a rise in disposable income, and so forth. What matters most here is that because supply is lower than demand, the competition is fierce for buyers, putting sellers in a position to sell to the highest bidder.
How Can You Estimate Your Home’s Current Value?
Let’s set the seller’s market aside for a moment. Let’s talk about some of the factors that will always impact your home’s value at any given time. These factors include:
- the location of your home, the availability of jobs in your area, the appeal of living in your neighborhood, etc.
- the size of your home and any desirable amenities it may have such as an open floor plan and indoor-outdoor living spaces
- the current state of your home and whether or not it will require remodels or repairs upon move-in
It’s in your best interest to work with professionals in real estate here, including agents and appraisers.
Should You List Your Home Over Value in 2022?
You may have a sense of your home’s value based on the factors we listed above. However, there is a chance that you can sell for well over your home’s value because of the 2022 market conditions. Should you try?
Some home pricing strategies do utilize this tactic. However, you don’t want to tip the scales so far that no one is willing to make an offer. Plus, buyers won’t be able to secure a loan for a home that is way over-priced.
Approach Home Pricing the Right Way
If you’re getting ready to sell your home, it’s important to understand how to price a house. Home pricing is a complex process and selling during a seller’s market offers advantages–but don’t expect miracles!
Looking for ways to stage your home for an open house? Take a look at our home decor content to get inspiration and easy-to-implement ideas.