A Pricing Guide for Decatur Home Sellers
A Pricing Guide for Decatur Home Sellers
All Decatur home sellers have a different strategy for how they hope to sell their house. These strategies may change according to what type of market they are currently dealing with. For example, a Decatur homeowner in a seller’s market does have a little more leeway than one in a buyer’s market.
This is why Decatur home sellers need to explore what option is best for their situation before putting their home up for sale.
Seller’s Market
Many people talk about seller’s markets versus buyer’s markets but few Decatur home sellers or buyers truly know what market they are in. There are a few variables that must be in play for a market to be a seller’s market. Homeowners should start the pricing of their house by deciding what type of market they are in.
The first statistic to look at is how long it takes to sell a house in the current Decatur market. Any markets that are averaging less than ten days are in a strong seller’s market.
It is also good to note what homes are selling for versus what the homeowner asked for, as well. In most seller’s markets, the Decatur home sellers will get what they ask, if not more.
If the average sale price of homes has been increasing over recent years the market may be leaning towards sellers.
Market Value Asking Price
Decatur home sellers who are not looking to make a huge profit and who are in no rush to get their home sold are going to do well listing their home at market value. The Decatur market value of a home is what it is worth in the current market. This takes into consideration comparable homes that have recently sold.
Local real estate professionals will know what homes can be considered comparable and which ones were sold for too much or too little. While the price may not be exactly what home sellers envisioned, the local pros are probably close to the current market value of the home. This strategy works well in a seller’s market to get the homeowner what they were asking in a relatively short amount of time.
High Pricing Strategy
In a seller’s market many home sellers take advantage of the fact there are buyers desperate to buy when there are few homes for sale. For this reason, many home sellers list their house well above what the market value is. Some go as far as listing ten percent above their market value to really rake in the cash.
One problem with this plan is finding a buyer who can offer more than a house may appraise for. A lender is not going to provide a borrower with a loan that is more than what a house has appraised for. This can make it impossible for an average buyer to make an offer.
Decatur homeowners that hope to utilize this strategy will need to focus on cash buyers or investors. If they can find an investor or cash buyer they could potentially sell their home for more than it is worth. They could make a major profit. However, they have to be careful not to lose out on interested buyers simply to try to play the system.
Low Pricing
Decatur home sellers who need to get rid of their house fast may want to sell it below market price. Putting the price at this lower price threshold will usually bring in a frenzy of buyers who want to fight over who gets to purchase the home. In the best case scenario, this causes a bidding war and the homeowner gets offers at market value or above.
The problem with hoping for a bidding war is that it does not always happen. Sometimes a Decatur house goes unnoticed and only a few offers trickle in. The homeowner will have to decide if they are going to take a low offer on their already below market value price or if they will wait it out and hope someone else comes along.
Pricing a Decatur house is never an easy task. However, in a seller’s market, Decatur home sellers do have a few options. They may want to make a huge profit and sell high or they could want to get rid of the house quickly and sell low.