The real estate market of 2022 continues to favor sellers. There are simply more buyers in the market than there are Lofts for sale. While this isn’t necessarily great news for buyers, it can certainly make most sellers feel more confident. But it’s vitally important not to let this information give you a false sense of security – especially when it comes to price. Even when multiple buyers may end up competing to buy your Loft, you should still price your Loft correctly from the start. Here’s why it matters so much.
Dangers of overpricing
You’ve no doubt heard how housing prices have skyrocketed in the last two years. The pandemic has upended the real estate market. Record-low interest rates have fueled demand, yet sellers have been hesitant to list. As a result, Loft prices continue to increase. According to the National Association of Realtors, Loft prices rose 16.9 percent from 2020 to 2021. As a seller, don’t let this news fool you into pricing your Loft sky high. There are several dangers to overpricing your Loft including:
- Your Loft sitting on the market for too long. When your Loft is priced more than comparable Lofts in your area, this can be a red flag to buyers. Your Loft could end up sitting on the market for much longer than needed.
- Deterring would-be buyers. Today’s homebuyers are savvy and will know when your Loft is priced well above the competition. This will be off-putting, thus reducing the number of interested buyers.
- Sending buyers the wrong message. Pricing your Loft too high at the beginning may lead to price drops along the way. When buyers see the listing price has been reduced, they may think that something is wrong with the Loft.
- Losing the deal when the appraisal comes in lower. If your buyers are financing the purchase of the Loft, then their lender will perform an appraisal. If they determine the Loft is worth less than the asking price, then it could jeopardize the sale.
Dangers of underpricing
While overpricing is more likely to happen in today’s market, there is still a possibility of pricing your Loft too low. The dangers of underpricing include:
- Causing worry among buyers. Today’s buyers are expecting Loft prices to be higher than they have been. When they see your Loft is priced below others in your area, they may worry there are expensive problems that will need to be addressed after closing.
- Leaving money on the table. While underpricing a Loft could lead to a bidding war, you’re more likely to end up leaving money on the table. If you want to maximize your profit, then you need to price correctly.
How to find your “Goldilocks” price
When you work with a trusted real estate professional, they will use their expertise and knowledge of the local market to help determine the appropriate listing price. This will help to ensure you sell quickly, have fewer contingencies to deal with, pay fewer out-of-pocket expenses, and make the best profit. If you’re interested in knowing the value of your Loft, then contact us today!
