Many times I have Sellers ask me if they can increase their listing price since the market is doing so well. Pricing a home competitively is just as important in this market as it is in any other market. In fact, it may be even more important. You want to make sure that your home sells quickly. The market is moving at lightning fast speeds and the majority of the buyer population is well informed and most have seen several homes prior to putting an offer on a home so they have seen the competition. If your property has to sit on the market for a lengthy period of time, it will stand out and buyers will question weather it is overpriced or if something else might be making it undesirable. Another concern with overpricing a home is an appraisal value lower than the purchase price when a buyer’s financing process is completed. A low appraisal can lead to re-negotiating the purchase price, possibly delayed closing or cancellation of the purchase agreement.
On the Buyer side, completing a market analysis at the time you make an offer has never been more important than it is right now. Just because a home is on the market does not mean it is worth what a Seller is asking. Many buyers are so elated to find a home that fits their criteria they may be tempted to skip the market analysis step of the offer process. This is a mistake – a market analysis will give a solid idea of value as you move toward submitting an offer. As a Buyer you want to know if you are on target with your offer.