The Market’s Hot: Should You Increase Your Listing Price?
The housing market is incredibly hot right now, and with inventory so low, sellers undoubtedly have the upper hand. If you’re looking to sell your home, it might have you wondering if you can increase your listing price — and just how high you can go.
Can you tack an extra $10,000 on there and see if someone bites? What about $20K or $30K? Is the sky the limit?
While there’s no hard-and-fast answer here (it really depends on your individual market), there are some general guidelines you can follow to get it right.
Is it a good idea to increase your listing price? Here’s what to consider
1. Look to other sales in the neighborhood.
You generally want to fall in line with other recent home sales in your area. Going too high will likely leave you with appraisal issues later on, which are the No. 1 reason real estate deals fall through.
2. Beware the long sale.
Another problem when you increase your listing price and it’s too high is that you may not get any bites, and your home will sit stagnant for weeks or even months at a time. Listings that have a high “days on market” stat tend to worry buyers a bit. They start to wonder if something’s wrong with this house, or they may even avoid it altogether.
3. There’s something to be said for great deals.
Everyone wants a good deal. So pricing your home affordably, that’s a great way to attract buyers and book tours. And the more buyers who fall in love with the place? The more likely a bidding war will break out (and that usually means more in profits).
4. Remember the filter.
Most buyers have some sort of listing alert set up. These send them an email or message when a home that meets their parameters hits the market, allowing them to act fast and tour the property. The problem when you increase your listing price and it’s too high? You might not show up in these searches. If a buyer has a $300,000 and under filter on their search set up, listing your home at just $305,000 will mean you’re not even visible to them. This can cut down on your exposure considerably.
The bottom line if you want to increase your listing price
The right listing price depends on your market, as well as what other sales look like in the area. Lean on your real estate agent here, and heed their guidance when pricing your home. They’ll know the best course of action for your unique property and marketplace.