A few years ago, homes sold quickly with multiple offers well over asking price. Today’s housing market is different; buyers are more selective as inventory has grown. Homes take longer to sell, and more sellers are cutting prices.
To succeed now, start with pricing your house right from the beginning. This is crucial for making a sale.
Buyers and Sellers Have Different Price Expectations
A recent survey from Realtor.com shows that 81% of home sellers expect their asking price or more. However, actual sales data reveals a gap between seller expectations and buyer willingness. An annual report from the National Association of Realtors (NAR) indicates 44% of recently sold homes went for less than the asking price. Additionally, 1 in 3 sellers had to reduce their price at least once before selling. Expectations need to align with current market realities.
This indicates that not all buyers are willing to pay the prices many sellers are asking. While it is still possible to sell at a favorable price, it is important to start with a price that aligns with current market conditions.
What Happens When You Overprice Your House?
Initially pricing a house high may seem like a strategic decision to allow for negotiation. However, an overpriced home can remain on the market for extended periods and deter potential buyers.
Buyers often perceive houses that have been listed for a long time with skepticism, which can result in fewer showings, decreased interest, and eventual price reductions. As Realtor.com states:
"By getting the right price early on, you can increase the odds buyers will be interested in the home. In turn, this decreases the chances the home will sit on the market for a lengthier timeline, also reducing the odds you’ll need to lower the listing price.”
Extended listings can make it more challenging to sell a house.
You Still Have a Great Opportunity – If You Price Your House Right
To avoid this, it is advisable to consult with a local agent who understands the market dynamics. Agents can assess recent sales, buyer trends, and inventory levels to determine the optimal pricing for your area.
It is worth noting that home prices have increased by over 57% in the past five years. Therefore, even if the initial asking price is slightly adjusted, there is still a strong potential for profit.
Working with the right agent can help attract more attention, reduce the time your house remains on the market, and maximize the chances of receiving a strong offer. According to Mike Simonsen, Founder of Altos Research: “...the best properties, well priced are selling quickly in most of the country.”
Bottom Line
The market has evolved, but there remains an opportunity to sell. It is essential to develop an appropriate pricing strategy. Give me a call so we can review your needs and help you understand current price trends in your area and establish a competitive price point for your property.