Setting the right price for your home will help you get top dollar in the market. When you price your home properly, you increase the chances that the offer you receive will nearly match your asking price and with competing offers—especially in the competitive housing market we have here in Surrey.

Over Pricing Your Home

Your property has the best chance of selling within its first seven weeks on the market. And, studies indicate that the longer a property stays on the market, the less it will ultimately sell for. A property priced 10% more than its market value is significantly less likely to sell within this window than a property priced close to its actual market value. 

About three-quarters of homes on the market, today are 5-10% overpriced. Sellers will usually over-price their homes by this margin if, either, they firmly believe the home is worth more than what the market indicates, or if they want to leave room for negotiation. Either way, if you choose to over-price your home, you run the risk of increasing the amount of time your home spends on the market.

Under Pricing Your Home

At the other end are houses that are priced below market value. Under-pricing often occurs when the owner is interested in a quick sell. You can bargain on these homes attracting multiple offers and ultimately selling quickly at—or above—the asking price.

Howe Markets Effect Home Price

Here are the types of market conditions and how they may affect your housing sale:

1. Seller’s Market:

A Seller’s market is considered a “hot” market. This type of market is created when demand is greater than supply—that is, when the number of Buyers exceeds the number of homes on the market. As a result, these homes usually sell very quickly, and there are often multiple offers. Many homes will sell above the asking price.

2. Buyer’s Market:

A Buyer’s market is a slower market. This type of market occurs when supply is greater than demand, the number of homes exceeding the number of Buyers. Properties are more likely to stay on the market for a longer period of time. Fewer offers will come in, and with less frequency. Prices may even decline during this period. Buyers will have more selection and flexibility in terms of negotiating toward a lower price. Even if your initial offered price is too low, Sellers will be more likely to come back with a counter-offer.

3. Balanced Market:

In a balanced market, supply equals demand, the number of homes on the market roughly equal to the number of Buyers. When a market is balanced there aren’t any concrete rules guiding whether a Buyer should make an offer at the higher end of his/her range, or the lower end. Prices will be stable, and homes will sell within a reasonable period of time. Buyers will have a decent number of homes to choose from, so Sellers may encounter some competition for offers on their home, or none at all.

Remember, a Realtor is trained to provide clients with this information about the market, helping you make the most informed decision possible. The right Realtor will guide you through the ups and downs of the market and keep you up-to-date with the types of changes you might expect.

Here are a few ways your realtor may help you price your home for a higher sale. 

Other Market Changes That May Effect Your Home Price

There are lots of other things that come up in the market here are a few valuable things to note when pricing your home:

1. Location:

The proximity of your home to amenities, such as schools, parks, public transportation, and stores will affect its status on the market. Also, the quality of neighbourhood planning and future plans for development and zoning will influence a home’s current market value, as well as the ways in which this value might change.

2. Property:

The age, size, layout, style, and quality of construction of your house will all affect the property’s market value, as well as the size, shape, seclusion, and landscaping of the yard.

3. Condition of the Home:

This includes the general condition of your home’s main systems, such as the furnace, central air, electrical system, etc., as well as the appearance and condition of the fixtures, the floor plan of the house, and its first appearances.

4. Comparable Properties:

Ask your Realtor to prepare you a general market analysis of your neighbourhood, so you can determine a range of value for your property. A market analysis will provide you with a market overview and give you a glimpse at what other similar properties have been selling for in the area.

5. Market Conditions/ Economy:

The market value of your home is additionally affected by the number of homes currently on the market, the number of people looking to buy property, current mortgage rates, and the condition of the national and local economy.

Getting The Best Price

While selling your home it is highly recommended that you use a realtor. A realtor that specializes in your local area can help you price for the right market conditions and take market changes into account. Not only can your realtor help you price your home but they can suggest minor changes around the house to improve the perceived value of your home. Some of these tips include staging your home. Here are a few examples of why this may help improve the perceived value of your home. 

Here are three tips to help you choose the best realtor.