If Your Home Has Not Yet Sold, It May Be Overpriced
Has your house been on the market for a long time without selling? If so, you should be aware that this is quite unusual, particularly at this time. This is because the supply of available homes for sale remains significantly lower than in a typical year. As a result, buyers have fewer options than usual, so your home should be an oasis in an inventory desert.
So, if homebuyers have few options and your house has not sold, there is a reason. Let us address one potential stumbling block that may be deterring buyers: your asking price.
Especially with today’s higher mortgage rates already putting a stretch on their budget, buyers are being a bit more sensitive about price. As a recent article from the Wall Street Journal (WSJ) says:
“If you are serious about selling your home now, don’t get greedy with the asking price. This is still a seller’s home market as there simply aren’t enough affordable homes for sale in many parts of the country. But with average 30-year mortgage rates above 6%, buyers are much more price-sensitive than they were a year ago.”
Why Setting the Right Price Matters
While you want to maximize the return on your investment when you sell your house, you also need to be realistic based on current market conditions. The simple truth is your house is only going to sell for what people are willing to pay right now.
This can be a hard thing to accept. Especially since emotions can run high during the selling process, which only complicates matters more. After all, you may have lived in this house for years, so it’s only natural that you’re emotionally tied to it, and those heartstrings can make it harder to be objective.
But it’s important to acknowledge that a bigger-than-expected price tag deters buyers and may make them dismiss your house as a possibility before even seeing it. And if no one’s looking at it, how will it sell?
If you want to get your house sold, you’ll need to do something to spark interest in your home again. That’s where a local real estate agent comes in. They’ll help use data to find out if it’s priced too high for your local market. They consider the value of homes in your neighborhood, current market trends and buyer demand, the condition of your home, and other factors to determine the best price for your home, allowing you to close this chapter and begin the next.
While there are not many homes for sale right now, the asking price of your home is still important. And, if it’s not selling, it may be priced too high.