Selling Your House? Your Asking Price Matters More Now Than Ever
Tuesday Sep 27th, 2022
There is no denying that the housing market has slowed since the frenzy of the previous two years. But if you're considering selling your house, what does it mean for you?
While experts predict that home values will continue to rise in most markets, they are doing so at a slower rate as a result of declining buyer demand brought on by rising mortgage rates. As a result, there are more houses available. The way you price your home is more important than ever during a change like this one.
Why Today’s Housing Market Is Different
During the pandemic, sellers could price their homes higher because demand was so high, and supply was so low. This year, things are shifting, and that means your approach to pricing your house needs to shift too.
Because we’re seeing less buyer demand, sellers have to recognize this is a different market than it was during the pandemic. Here’s what’s at stake if you don’t.
Why Pricing Your House at Market Value Matters
The price you set for your house sends a message to potential buyers. If you price it too high, you run the risk of deterring buyers.
When that happens, you may have to lower the price to try to reignite interest in your house when it sits on the market for a while. But be aware that a price drop can be seen as a red flag for some buyers who will wonder what that means about the home or if in fact it’s still overpriced. Some sellers aren’t adjusting their expectations to today’s market, and realtor.com explains the impact that’s having:
“. . . the share of listings with a price cut was nearly double its year ago level even as it remains well below pre-pandemic levels.”
You should set the price correctly from the outset to save yourself the hassle of having to reduce it afterwards. A real estate advisor is skilled in establishing the ideal asking price. They weigh market trends and buyer demand, the condition of your home, the value of properties in your neighborhood, and other factors to determine the appropriate price.
Not to mention, pricing your house fairly based on market conditions increases the chance you’ll have more buyers who are interested in purchasing it. This helps lead to stronger offers and a greater likelihood it’ll sell quickly.
Why You Still Have an Opportunity When You Sell Today
Rest assured, it’s still a sellers’ market, and you’ll still get great benefits if you plan accordingly and work with an agent to set your price at the current market value. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:
“Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”
Mike Simonsen, the Founder and CEO of Altos Research, also notes:
“We can see that demand is still there for the homes that are priced properly.”
In today's real estate market, houses that are priced reasonably are selling swiftly. In order to optimize your sales potential and reduce your hassle in a changing market, let's connect to make sure you price your home based on current market conditions.