2 Things You Need to Know to Properly Price Your Home

By
Real Estate Agent with Keller Williams Greater Omaha 20041001

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 Omaha house in today’s market, let’s get together to set your listing price properly from the start!

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Market Trends
Location:
Nebraska Douglas County Omaha
Groups:
Market Updates
Market Reports
Omaha Real Estate
Tags:
omaha real estate
omaha homes for sale
top omaha real estate agents
top omaha realtors
best omaha real estate agents
guaranteed sold
omaha guaranteed sale
best omaha realtors
omaha real estate professional

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Anonymous
Pallet uae

your article is just awesome and it is really helpful. Thanks for sharing this informative content with us.

Jul 21, 2019 09:34 PM #1
Rainer
1,225
York LLC
York General LLC - Sunfish Lake, MN

Helpful Blog,  Thanks for sharing this informative content with us.
Keep Posting

 

 Metal Fabricator Musaffah, Abu Dhabi, UAE,

 

Jul 23, 2019 02:52 AM #2
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
824,618

The Trumm Team Omaha Homes for Sale, Real Estate

Ask me a question
*
*
*
*
Spam prevention

Additional Information