2 Things You Need To Know To Properly Price Your Home

Dated: July 18 2019

Views: 105

2 Things You Need to Know to Properly Price Your Home

In today’s housing market, home prices are increasing at a slower pace (3.7%) than they have over the last eight years (6-7%). However, they are still are above historical norms. Low supply of listed homes and high demand from buyers has pushed prices to rise rapidly.

In the mind of the homeowner, annual home price appreciation over 6% has become the new normal. This becomes a challenge when a homeowner looks to refinance or sell their home, as the expectation of what the homeowner believes the home should be worth does not always line up with the bank’s appraisal.

Every month, the Home Price Perception Index (HPPI) measures the disparity between what a homeowner seeking to refinance their home believes their house is worth and what an appraiser’s evaluation of that same home is.

Over the last five months, the gap between the homeowner’s opinion and the bank’s appraisal has widened to -0.78%. This is important for homeowners to note, as even a 0.78% difference in appraisal can mean thousands of dollars that a buyer or seller would have to come up with at closing (depending on the price of the home).

The chart below illustrates the changes in home price estimates over the last 12 months.

2 Things You Need to Know to Properly Price Your Home | MyKCM

While the appraisal gap widens, another trend is also becoming more common.

According to realtor.com, “the share of homes which had their prices cut increased by 2% compared to last year”. Thirty-seven out of the 50 largest US housing markets saw an increase in overall price reductions.

In today’s market, you need an expert agent who can help price your house right from the start. Homeowners who make the mistake of overpricing their homes will eventually have to drop the price. This leaves buyers wondering if the price drop was caused by something wrong with the house. In reality, nothing is wrong- the price was just too high!

Bottom Line

If you are planning on selling your house in today’s market, let’s get together to set your listing price properly from the start!

Blog author image

Danah Prophet

Danah Prophet - Realtor, Office Manager, Buyers Agent, Salt Realty | Mobile: 843-685-0956 Danah@SaltRealtySC.com | http://www.SaltRealtySC.com/ An Innovative Real Estate Firm Specializing in Coast....

Latest Blog Posts

LISTED In CONWAY For 265K

💥👀LISTED by, Mo Paul's Team at Salt Realty. 👀💥#Conway 110 Echaw Drive #Tanglewood - ALL 1 LEVEL, 3 BDRM, 2 BA, split floor plan, Tons of Upgrades; LVP flooring throughout main living &

Read More

Land For Sale In Litchfield Area

💥👀 LAND FOR SALE in Litchfield area 👀💥 #TheBaysofLitchfield #PawleysIslandSC by Mo Paul's Team at Salt Realty. 😎🌊 TIRED OF FIGHTING FOR RESALES? Do you want to build YOUR custom

Read More

Premium Office Lease Opportunity In Murrells Inlet

💥👉Premium office lease opportunity at the Quad in Murrells Inlet, South Carolina, by Mo Paul's Team at Salt Realty 💥 Located on Hwy 17 Bypass at the very Southern end of Murrells Inlet. The

Read More

Listed In The Villages At Queens Harbor

💥🥰 LISTED In The Villages at Queens Harbor 😍💥by, Mo Paul's Team at Salt Realty. 3 Bedroom, 2 Bathroom Top Floor, END UNIT condo that over looks the pond/lake features; split bedroom

Read More