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!

Click here for a FREE home valuation.

How to Get the Most Money When Selling Your Home

How to Get the Most Money When Selling Your Home | MyKCM

Here’s another great article from Keeping Current Matters. If you’d like to discuss strategy for selling YOUR home, call Terry Belt & The Belt Team at (703) 242-3975.

Every homeowner wants to make sure they get the best price when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensuring you get the highest price possible.

1. Price it a LITTLE LOW 

This may seem counterintuitive. However, let’s look at this concept for a moment. Many homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In reality, this just dramatically lessens the demand for their house (see chart below).

How to Get the Most Money When Selling Your Home | MyKCM

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price, but will instead have multiple buyers fighting with each other over the house.

Realtor.com gives this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

2. Use a Real Estate Professional

This, too, may seem counterintuitive, as the seller likely believes that he or she will net more money if they don’t have to pay a real estate commission. With that being said, studies have shown that homes typically sell for more money when handled by a real estate professional.

Research posted by the National Association of Realtors revealed that:

“The median selling price for all FSBO homes was $185,000 last year. When the buyer knew the seller in FSBO sales, the number sinks to the median selling price of $163,800. However, homes that were sold with the assistance of an agent had a median selling price of $245,000 – nearly $60,000 more for the typical home sale.”

Bottom Line

Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the price you get for your house.

If you’d like to discuss strategy for selling YOUR home, call Terry Belt & The Belt Team at (703) 242-3975. You can also request our FREE Report “40 Questions You MUST Ask Your Realtor BEFORE You Sell Your House”.WHat Is My Home Worth

Selling Your Home? Thinking of “Trying” The Market?

Price-It-Right-STM- Keeping Current Matter.jpgWhich strategy works best – pricing BELOW the market, pricing AT the market, or pricing ABOVE the market just to see if you can get your price?

Well, that all depends. On YOUR market. If you’d like to talk strategy and find out about YOUR SPECIFIC market, contact The Belt Team. In the meantime, here’s some great info from Keeping Current Matters. We happen to think in many cases it makes a LOT of sense. (Note: Not ALL markets are the same. There are NO absolutes. Call us at 703-242-3975 to find out about YOURS.)


In today’s market, where demand is outpacing supply in many regions of the country, pricing a house is one of the biggest challenges real estate professionals face. Sellers often want to price their home higher than recommended, and many agents go along with the idea to keep their clients happy. However, the best agents realize that telling the homeowner the truth is more important than getting the seller to like them.

There is no “later.”

Sellers sometimes think, “If the home doesn’t sell for this price, I can always lower it later.” However, research proves that homes that experience a listing price reduction sit on the market longer, ultimately selling for less than similar homes.

John Knight, recipient of the University Distinguished Faculty Award from theEberhardt School of Business at the University of the Pacific, actually did research on the cost (in both time and money) to a seller who priced high at the beginning and then lowered their price. His article, Listing Price, Time on Market and Ultimate Selling Price, published in Real Estate Economics revealed:

“Homes that underwent a price revision sold for less, and the greater the revision, the lower the selling price. Also, the longer the home remains on the market, the lower its ultimate selling price.”

Additionally, the “I’ll lower the price later” approach can paint a negative image in buyers’ minds. Each time a price reduction occurs, buyers can naturally think,“Something must be wrong with that house.” Then when a buyer does make an offer, they low-ball the price because they see the seller as “highly motivated.”Pricing it right from the start eliminates these challenges.

Don’t build “negotiation room” into the price.

Many sellers say that they want to price their home high in order to have“negotiation room.” But, what this actually does is lower the number of potential buyers that see the house. And we know that limiting demand like this will negatively impact the sales price of the house.

Not sure about this? Think of it this way: when a buyer is looking for a home online (as they are doing more and more often), they put in their desired price range. If your seller is looking to sell their house for $400,000, but lists it at $425,000 to build in “negotiation room,” any potential buyers that search in the $350k-$400k range won’t even know your listing is available, let alone come see it!

One great way to see this is with the chart below. The higher you price your home over its market value, the less potential buyers will actually see your home when searching.

Selling Your Home? Make Sure the Price Is Right! | Simplifying The Market

A better strategy would be to price it properly from the beginning and bring in multiple offers. This forces these buyers to compete against each other for the“right” to purchase your house.

Look at it this way: if you only receive one offer, you are set up in an adversarial position against the prospective buyer. If, however, you have multiple offers, you have two or more buyers fighting to please you. Which will result in a better selling situation?

The Price is Right

Great pricing comes down to truly understanding the real estate dynamics in your neighborhood. Let’s get together to discuss what is happening in the housing market and how it applies to your home.


FREE, Instant Online Home Valuation Estimate

Search our STATE-OF-THE-ART Home Finder Site

For more questions or for a specific update on YOUR neighborhood – call Terry Belt & The Belt Team at (703) 242-3975 for a FREE Buyer or Seller Consultation. Don’t you deserve the BEST Realtor in Northern Virginia?!

“Market Analysis, Pricing Strategy, Contract Negotiations” Most Important When Selling Home

Survey Says

Market analysis, pricing strategy, contract negotiations” are the most important services The Belt Team provided during the homeselling process, said Mike Shea who sold his home on Moonac Court in Vienna recently.

After every home sale is complete, The Belt Team sends a customer service survey. Not only do we want to find out what the experience was like for our clients, we also want to know what we can do better. Our philosophy is to always raise the bar higher.

This time, our client Mike Shea surprised us – not with the 10 out of 10 rating – but with his advice – that we need to share more with the marketplace about how our skills set us apart.

Mike – consider it done!

Here’s what he said:

My only recommendation is The Belt Team could do a better job of showcasing their skills to the marketplace. You are more than just a group of Broker/Realtors. Everyone brings a unique skill to the table and that translates into effective transaction management and best in class results for your clients.”

He continued, “As always Gail worked endless hours and did a terrific job, Terry provided valuable behind the scenes input and Patty deserves special recognition for her quick response to numerous administrative requests. You have a very professional team with effective tactical skills.”

Thanks Mike – you made our day! We’ve always believed that a team of specialists outperforms a team of generalists – like a Dream Team of Real Estate. We’re happy to know that our clients receive value added as a result of our philosophy!

Call (703) 242-3975 if you would like to work with Real Estate’s Dream Team. Our mission is “Changing Lives For The Better – One Family At A Time”!

The Belt Team - Real Estate's Dream Team