Pricing Your Property When You’re Selling In A Seller’s Market

If you’re thinking that just because you’re selling your home in a seller’s market you can ask whatever price you want for it, you’re absolutely right. You CAN ask for whatever price you want. But that doesn’t mean you’re going to get it. Many homeowners make the mistake of thinking that there are 10 buyers lined up in front of every home that’s for sale and all of them are just hoping you’ll pick THEM to sell your house to. But the reality is when you’re selling your home in a seller’s market you have to be just as reasonable about your asking price as you do at any other time.

The simplest definition of a seller’s market is that there are way more buyers looking for homes than there are homes for sale. This will have an impact on the economy, the perceived value of your home, and the price you can ask for it. But banks usually will not loan more than eighty% eighty percent of the appraised value of the property so you home still needs to be priced at or near the appraised value if you expect anyone to be in a position to get the financing to buy it.

And with the recent changes in the economy these restrictions get tighter each day. That already means that anyone who desires to buy your home is going to have to come up with a substantial down payment on their own just to make up the difference between the appraised value and the market value. If you are asking even more than market value you may have to sit on that house for a while.

One mistake that owners make when trying to sell in a seller’s market typically happens during the first week the home is on the market. All of a sudden there are Real Estate agents bringing people through their home 2or3 times on a daily basis and there is a flurry of activity. By the end of the first week there’s an offer on the table that is not quite what the seller is asking for but the agent positively feels it’s negotiable. And then the seller turns the offer down and tells the agent they need to raise the asking price! They’ve clearly priced it too low. Look at all of those people who’ve been here and it’s only been on the market for a week.

However what that seller fails to realize is that that flurry of activity is only going to last one or 2 weeks because the house has just come on the market and everyone wants to see it. But that doesn’t mean that everyone wants to pay his asking price and they definitely will not want to look at it again if he raises the price even more. If the first offer you receive on your home is within reason and has room for negotiation, it’s usually in the sellers best interest to work with it and get the house sold. Whether it is a seller’s market or not, people are still only going to pay what the home is worth.

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