The housing market is in a very interesting place right now. There is barely any inventory out there. For example, one CNN headline reads “76 all-cash offers on one home. The housing madness shows no signs of slowing.”
In a crazy market like this, how do you price your home to sell?
I recently took a course by the National Association of Realtors where I earned the Pricing Strategy Advisor certification, and I want to share a couple of things that I learned with you today:
1. The pricing pyramid. Pricing a home is the second-most-important decision when selling a home after choosing your Realtor. If you price below market value, the pyramid says you’re going to get a ton of showings and offers. If you price it above market value, you won’t get nearly as many and your home will take much longer to sell.
2. Valuation Services Matrix. There are four main ways that a home is valued. A CMA is an estimate of the probable selling prices of a property in a given market. It’s an extremely useful tool because it’s based on hyperlocal statistics. The appraiser does another type of analysis, an appraisal, to make sure they can get their money back. There are also automated valuation models like Zillow or our home value website. Finally, there is the broker price opinion, which is an estimate of the probable selling price of a property.
“If you price above market value, you won’t get as many offers.”
It’s essential to work with a Realtor who knows exactly what’s going on in the market at this very moment. If you have any questions for us or are thinking about selling your home, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
