The Austin Board of Realtors just released the official numbers for the month of July and in the City of Austin, the average sales price hit $345,000 in July 2016, a 4.6 percent increase from last year, while the number of homes sold in July declined by 7.3 percent. Housing inventory rose slightly from 2.1 months in July 2015 to 2.4 months in July 2016 and homes spent four more days on the market than the previous year.
When YOU are choosing the right price to list your Austin area home for, you are making a big decision. Price your home too high and you could run off qualified buyers. Price your home too low and you could leave money on the table. To choose the right price, most people use market statistics, comparable properties and 50-year-old pricing strategy. In episode #17 of Real Estate, Real Answers, I’m going to share with you a $1 mistake that could cost you thousands that you need to avoid to move smart and show you how to price your Austin and Round Rock home right!
Hi guys, I’m Kyle Pfaffe and I have a passion for helping people like you make smart decisions that enable you to achieve the dreams and financial success you never thought was possible. If you have a question, please ask it in the comments below and I will answer it in another video. Today we’re talking about a $1 or $100 pricing mistake that can cost you thousands!
First, I’m going to give you a chance to pick the right price for our practice house. Let’s say your home is worth around $300,000 – let’s say $297,000 to be exact. Look at the prices to my right/left and guess what you think is the best price to list the house at. Let me know your guess and why in the comments below!
$309,000 is not the right answer mainly because you have overpriced your home and qualified buyers will overlook your home. What do you think about $299,000 or $299,999? That seems like the correct choice, right? NO! For years, the model for pricing homes, cars and many other things has been to price the home $1 to $100 under the next price point. That “OLD” way of pricing your home could cost you THOUSANDS!
In the 21st century, you have to do things differently. Think about how YOU and other buyers search for homes right now. If you search on Realtor.com or use Zillow’s app like millions of people do, you don’t search for homes that are “$299,00000.” On Realtor.com, you can search for homes with pricing parameters that jump every $50,000 or $100,000. On Zillow, you use a slider that adjusts every $5000. If you use the ancient pricing strategy and price your home for $299,000, anyone is looking for homes $300,000 or higher (a $1000 difference) is NEVER going to see your home! Your home is ONLY seen by buyers who are actually willing and able to pay LESS than what you are asking!
Don’t you think that the smart move would be to price your Austin home with today buyers and today’s search tools in mind? If you list your home for exactly $300,000, your home will be exposed to buyers looking below and above your price! That can make a huge difference in how much your home actually sells for.
If you have questions about selling your Austin area home or how to price your home to sell for the most money you can, contact me and I’ll be happy to help any way I can. Thanks for checking out Episode #17 of Real Estate, Real Answers! Make sure to LIKE my Facebook page, Move Smart Austin and subscribe with your email to my blog in the right column.
What do those numbers mean? Well, home values in Central Texas continue to increase, which is great news for homeowners, but I believe those rising prices are starting to have cooling effect on the number of homes sold because of affordability. Home buyers, especially first time home buyers are being pushed further and further from Central Austin because they can’t afford the high prices. This will effect demand in Austin which should slow rising home values in Austin.
If you want to know more about the market in Williamson County, check out this post. If you have any questions about real estate or are thinking of buying a home, drop me a note or call me and I’d be happy to help!