Why Your Asking Price Matters Even More Right Now

Why Your Asking Price Matters Even More Right Now

If you’re considering selling your house, there's an important point to keep in mind. Despite it being a seller's market, you can't just set any price for your listing.

Home prices are still rising in most areas, but they're doing so at a slower rate due to higher mortgage rates affecting buyer demand. Additionally, the supply of homes for sale is increasing. This means buyers have more options, so if your house isn't priced correctly, it may not stand out.

Those two factors combined are why the asking price you set for your house is more important today than it has been in recent years.

Some sellers are discovering this the hard way, leading to more price reductions. Mike Simonsen, Founder and President of ALTOS Research, explains:

“Looking at the price reductions data set . . . It all fits in the same pattern of increasing supply and homebuyer demand that is just exhausted by high mortgage rates. . . As home sellers are faced with less demand than they expected, more of them have to reduce their prices.”

Some sellers haven’t adjusted their expectations to today's market. They might not be working with an agent who understands the current conditions or prioritizes being a local market expert. Without basing their pricing decisions on the latest data, they miss the mark.

To avoid pricing mistakes that could deter buyers and delay your sale, it's crucial to work with an agent who truly knows your local market. A knowledgeable agent can help you avoid errors like:

• Setting a Price That’s Too High: Some sellers have unrealistic expectations about how much their house is worth. That’s because they base their price on their gut or their bottom line, not the data. An agent will help you base your price on facts, not opinion, so you have a better chance of hitting the mark.
• Not Considering What Houses Are Actually Selling for: Without an agent’s help, some sellers may use the wrong comparable sales (comps) in their area and misjudge the market value of their home. An agent has the expertise needed to find true comps. And they’ll use those to give you valuable insights into how to price your house in a way that’s competitive for you and your future buyer.
• Overestimating Home Improvements: Sellers who have invested a significant amount of money in home improvements may overestimate how much those upgrades affect their home's value. While certain improvements can increase a home's appeal, not all upgrades are going to get a great return on their investment. An agent factors in what you’ve done and what buyers in your area actually want as they set the price.
• Ignoring Feedback and Market Response: Some sellers may be resistant to lowering their asking price based on feedback they’re getting in open houses. An agent will remind the seller how important it is to be flexible and respond to market feedback in order to attract qualified buyers.

In the end, accurate pricing hinges on understanding current market conditions, and only an agent has the comprehensive data and insights needed to determine the right price for your house. A skilled agent will use their expertise to develop a pricing strategy tailored to today's market, ensuring your house is priced to sell and you don't miss the mark.

Bottom Line

Setting the right asking price is crucial, especially in today’s market. To avoid costly mistakes and ensure your house sells quickly, let’s work together.