The real estate market is in a unique situation right now. Mortgage rates are the lowest they’ve been in years—and expected to keep decreasing—and many people are left wondering what that means for home prices.
While housing prices are currently increasing at a slower rate than usual—coming in around 3.7%, compared to the average of 6 – 7% over the past few years—they’re still surpassing historic norms.
In a competitive and active market like Raleigh, knowing how to price your home accurately is more crucial than ever! Luckily, we can help. Here are the two biggest factors to keep in mind when pricing a home.
Consider the Appraisal Gap
The Home Price Perception Index checks in every month on the difference between homeowners’ estimates of their property and the appraiser’s evaluation. Over the past few months, that number has steadily ticked up. Last July the difference was around .25% lower than buyers expected, but it’s tripled since then, now standing at .78%.
While that may not seem like a major gap, that small percent can still mean thousands of dollars in difference come closing—money that sellers would have to make up for.
Avoid Price Cuts
Not valuing your property accurately can create further problems down the road, as well. Realtor.com recently reported that price cuts in homes have increased 2% since last year. Again, 2% may not seem like a huge number, but 37 out of 50 of the largest US housing markets reflected this decrease—including Raleigh.
Oftentimes, there isn’t anything wrong with a home that gets a price reduction—it just started with the wrong price. If you hit the ground running with an accurate listing price, you won’t have to worry about knocking it down in the future! In fact, our selling tips can even help you net more for your home than usual.
List Your Home for the Right Price
Navigating market trends can be tricky, but luckily you don’t have to do it alone. At Linda Craft & Team REALTORS®, we have years of experience with buying and selling homes in Raleigh—meaning we know exactly how to handle the ups and downs of the market.