The Factors That Affect Home Pricing

If you ignore certain factors, your home may go unsold on the market. Here’s what you need to keep in mind.

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When it comes to correctly pricing your property, there are a few factors that can play a role in your decision. The first one is your competition.

How many properties are on the market near you? If there are few homes like yours in the area, you’ll see your value and price increase. However, when a wide range of inventory comes onto the market, it’ll adversely affect your property’s value.

Another factor is interest rates. When rates increase by 1%, buyers’ affordability can decrease by 6%. When rates fluctuate, it’ll affect your pricing.

If your property is overpriced, buyers won’t even look at it.

When you put your home on the market, 60% of your marketing plan is determined by pricing your home correctly. If it’s overpriced, buyers won’t even look at the property. On top of this, agents will use your property to leverage the sale of a cheaper home with the same value. If your property expires and you list it again down the road, it likely won’t sell for what it could have if you’d priced it correctly from the outset.

Lastly, the National Association of Realtors says that your home will have the most exposure within the first three to four weeks of being listed. Keep that in mind before you think of setting a high price that wards off buyers.

If you have any questions about this or any other real estate-related topics, feel free to reach out to me at 978-256-3306. In the meantime, I look forward to hearing from you soon.