As a seller in today’s Lake Tahoe real estate market, you may think that pricing over market value is a good way to go. After all, demand is high and the inventory is lower than our current mortgage rates…..what could go wrong? The reality of realty is that regardless of whether it is a buyer’s market or a seller’s market, you must always price homes for sale in Lake Tahoe according to the fair market value. That is of course if you are hoping for a quick sale at the best possible price. Let’s look at why pricing under or over can backfire.
When you price over what is appropriate, there is a bit of a snowball effect. For starters, homes for sale in Lake Tahoe that are priced too high can sit longer. The sub sequential price drops that follow shortly after can give potential buyers the wrong impression. These two things combined also tend to give off the impression that something is wrong with the home. After all, if it is a perfectly good home, why is it sitting so long and why does the price keep getting lowered? “Why does no one want it?” is the thought that pops into buyers’ minds. Additionally, when Lake Tahoe homes for sale are priced too high, not only does it deter some because it is out of their budget, some prospective consumers don’t even see it in their search results because they aren’t looking at properties at that price point. Even if it is just $10k over what would be appropriate, people search within their budget. This means you are missing out on people who could afford what your home is actually worth.
Now, let’s be clear: Pricing 5% under market value is a great way to get multiple offers and close over ask depending on the home AND the current Lake Tahoe real estate conditions. While it is a great strategy, it does not work for every home, so this plan is truly something that needs to be discussed in depth with your chosen Realtor. Sometimes when Lake Tahoe homes for sale ae priced too low for the market, sellers can lose value and leave money on the table.
For more information on pricing and selling homes for sale in Lake Tahoe, feel free to reach out. I would be happy to help!