Many sellers are setting their asking price too high for today's market. That is leading to more price cuts.
A growing number of homeowners are overestimating today’s market. And that’s why the number of sellers dropping their price is back at normal levels.
Right now, roughly 1 in 5 sellers are being forced to drop their asking price in order to be competitive.
Why are some sellers overpricing their homes?
They’re unaware of or confused by current market conditions.
Inventory has grown in recent months. That means buyers have more options than they did last year or the year before. If a home is priced to high, buyers will skip over it for another that isn’t.
They’ve priced their home based on how much they want to make from the sale.
Homes must be priced based on their value in the current market, or they will not sell. Buyers will not pay more because a seller wants to walk away with more. They will move on.
They are hoping to leave “wiggle room” for negotiation with buyers.
Some sellers price their home higher because they hope to leave room to come down in price during negotiation. Unfortunately, these over priced homes never make it to the negotiation phase.
How can you avoid this trap? Lean on your agent’s expertise!
Your agent is (or should be!) an expert in your local market. National trends matter, but local conditions always vary. Those small differences add up.
Your home’s condition is an important factor in finding the best price. An experienced agent will know which details are important to buyers and which are not.
Updates and improvements also impact your home’s value. Successful agents know what property upgrades are of the most value to buyers, and their real worth.
Current buyer demand is not always straightforward. A full-time agent will already be familiar with the type of buyer your home is most attractive to.
Bottom Line
You only have one chance to list your home at the best price. Reducing it after that can leave buyers wondering what went wrong.
Still, there’s no reason to be overwhelmed. An experienced agent can help you navigate this (and every other) part of the process.
I’d love to help you find the best possible price for your home.
