Real estate experts recommend pricing your house for sale below the market price, rather than overpricing it. This is usually to entice as many potential buyers as possible to come and look at your house, so you can get a fast, painless sale. You can click here https://www.sandiahomebuyers.com/sell-your-house-fast-in-new-mexico/ to see more.
Experts also say that if your house isn’t priced correctly, it could take you up to 60 days to find a buyer. That’s because, in most markets, houses priced too high haven’t been sold in months or even a year. On the other hand, homes that are priced below their true market value can sit on the market for 18 months or more.
What is “Market Value?”
The true market value of your house is the price that exactly matches the supply of houses and the demand for houses in your area at a particular point of time. The price might be slightly higher or lower than fair market value, depending upon how many prospective buyers are currently looking for a house like yours and how desperate and competitive they are. An appraiser can help you determine fair market value by evaluating any recent sales in your neighborhood.
Why Should You Price Your House Below Market Value?
Price your house low to attract a huge number of potential buyers on the market. The more potential buyers you have looking at your house, the quicker you’ll find a buyer. In fact, even if only 10% of the market sees your house, that’s still higher than 0%, which is what you’ll get if your price is too high.
How Far Should You Price Your House?
Generally, real estate experts recommend that you price your house 5% below fair market value. That’s because other factors affect the actual sale price, including the condition of your house and the distance from the city center, so a 5% margin is a conservative estimate.
How Do You Calculate the True Market Value of Your House?
You can use an appraisal to determine the real market value, which is what your house would sell for if you put it on the market today. If you need an appraisal, ask a realtor or your local AAMA or Better Business Bureau (BBB) to refer you to a qualified appraiser.
