Not necessarily. At PureWest, we closely monitor real estate trends in all the markets we serve, and we have seen that overpricing your home can be as big of a mistake as underpricing. Here are four very important reasons to work closely with your PureWest agent and set a price that reflects the true current market value of your Montana property.
1. Homes have the most value when first listed
Real estate in Montana sees the most interest from potential buyers in the first couple of weeks after it is listed. If your home is overpriced, some buyers will immediately cross it off their list because it is out of their price range. In a market like this where homes are selling quickly, buyers do not assume — or even hope — that a listing’s price will drop in a few weeks, or that they can put in a lower bid and have a chance at the home. Eliminating potential buyers by overpricing means that a home can sit on the market much longer than its comps, losing its “freshness” on the MLS and raising questions among potential buyers about why it hasn’t sold.
2. A home that stays on the market costs you more
Whether you have one of Montana’s luxury homes for sale or a traditional piece of residential real estate, no one wants to pay more than necessary each month for their home. If you overprice a listing and your home takes longer to sell as a result, that’s more money you’re spending on your mortgage, taxes, utilities, and maintenance. If you’ve already moved to your new home, you’ll be paying for two homes until your first home sells. If you need to sell your current home before you move, you don’t want to run the risk of missing out on the new home that you really want. In either scenario, a well-priced home means a quick sale, while an overpriced home means more expense and hassle.
3. Don't count on reducing the price later on
Some people consider listing their Montana property for top dollar using the rationale that they can always lower the price later. While this is true, it is not a good sales strategy. Price drops send the wrong message about a home, suggesting that there may be a good reason no one has bought it yet. Especially in a busy real estate market, where most competitively-priced homes move quickly, an unsold home with a reduced price looks like a problem house, not a great bargain.
4. Remember interest rates
When interest rates begin to tick up, it affects a home's affordability — buyers will be looking at a higher monthly payment for the same house, which may affect the price point they're shopping in. Many buyers are looking to purchase a home quickly now, before borrowing money becomes more expensive. Potential buyers are even less willing to "wait and see" on the price for a home they love when they're concerned about rising interest rates.
The real estate market has been changing quickly, and it can be difficult to know how to set a price when you’re selling your home in Montana. This makes it even more important to work with a local real estate expert, someone who is constantly monitoring the market. At PureWest, we work hard to set the standard in Montana real estate. Our agents will help you price your home correctly, neither too low nor too high, to generate the maximum amount of buyer interest and offers.
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