Buyer’s market or seller’s market – the simple fact is that your home is worth only what a buyer will pay for it. The simple law of supply and demand usually determines the final sale price. If there are fewer homes for sale in your area, then buyers must compete for those listings, making it a seller’s market.
However, when there is a glut of homes for sale, buyers have more choice and more power to dictate price and terms, creating a buyer’s market. Many communities are seeing large inventories of homes for sale, due to economic conditions and defaults.
So if your home is to get attention in those conditions, you’ve got to price aggressively against your competition. Do not overprice your home, because you may end up making even less money than if you had priced properly from the start. Why? Because sellers who overprice have to keep chasing the market down by reducing their price.
While setting a price is ultimately your decision and your decision alone, do some research and educate yourself first. Order an appraisal and consult with a real estate professional to get a realistic figure for your home’s value. If you choose not to comply with current market value, then you won’t be a seller, you’ll just be an owner with a For Sale sign in the yard.
Elwynn Schwartz is the owner of Chattanooga Real Estate Consultants and may be reached at 423-894-3050.