Your Asking Price Matters More Now Than Ever
The housing market has undoubtedly slowed from the frenzy we witnessed over the prior two years. But what does this signify if you're thinking of selling your home?
Experts say that home prices will continue to rise in most areas and would accelerate, but because increasing mortgage rates are driving down buyer demand, they're climbing at a slower rate. As a result, there are now far more properties on the market. And in situations like this one, where demand shifts dramatically, the way you price your home is more crucial than ever.
Why Today’s Housing Market Is Different
During the pandemic, sellers may have been able to price their houses higher because demand was so high and supply was so low. This year, things are changing, which means your house pricing strategy should do the same.
Because we're seeing less buyer demand, sellers have to recognize that this is a different market than it was during the epidemic. Here's what will happen if you don't take action.
Why Pricing Your House at Market Value Matters
The price you set for your property sends a message to potential purchasers. You run the danger of deterring buyers if you price it too high.
If no one is buying your house after a few weeks, you may have to decrease the price in order to rekindle interest. However, keep in mind that a price reduction might be interpreted as a warning by potential buyers, who will wonder what it means about the property or if it is 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.”
To avoid the burden of lowering your price later, you should start by pricing it precisely. A real estate professional understands how to figure out the optimum asking price. They weigh the value of homes in your neighborhood, current market trends and buyer demand, the condition of your home, and more to determine the best price.
Furthermore, pricing your property appropriately based on market conditions increases the likelihood that you'll receive more interested buyers. This helps to create stronger offers and a higher possibility of selling fast.
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, homes priced correctly sell fast. Connect with The Perreault Group to make sure you price your property appropriately so you can maximize your sales potential and cut down on the hassle in a changing market.