Homes were selling very quickly and for a lot more than they were listed for a few years ago. It looked like people would pay any price and still be in line at the door.
The housing market today is different, though. Since there are more items for sale, buyers are being pickier. A few more days have passed since the homes were sold. More and more sellers have to lower their prices.
How do you still win? It all starts with setting the right price for your home from the start. That’s more important than ever now, and it can make or break your sale.
There’s a Real Price Disconnect Between Buyers and Sellers
81% of home sellers surveyed by Realtor.com are sure they’ll get at least the price they’re asking for their home. But sales numbers show that the difference between what sellers want and what buyers are willing to pay is growing.
A report from the National Association of Realtors (NAR) every year shows that 44% of recently sold homes were sold for less than the asking price. And one third of people who sold their home had to lower the price at least once before it sold. It means that your hopes and dreams may not match up with the real world right now.
This is telling you something important: some buyers aren’t ready to pay the prices that many sellers are asking. That doesn’t mean you can’t set a high price, but you should start with a price that is in line with what people are willing to pay right now.
What Happens When You Overprice Your House?
It might seem smart to set the price of your home high at first so that you have more room to negotiate. But the truth is that a house that is too expensive can sit on the market for a long time without selling.
It’s smart for buyers. They start to wonder what’s wrong with a house that has been empty for a while. That could mean fewer showings, less interest, and eventually a price cut to get people interested again. This is what Realtor.com says:
By setting the right price early on, you can make it more likely that people will want to buy the house. This lowers the likelihood that the house will stay on the market for longer, which also lowers the likelihood that you’ll have to lower the price.
It can be harder to sell a house if it sits on the market for a long time.
You Still Have a Great Opportunity – If You Price Your House Right
If you don’t want to make this mistake, you should set your asking price with the help of an agent who knows what’s going on in the area.
To find the best price for your neighborhood, your agent will look at recent sales, buyer trends, and inventory levels. This is because the best price will depend on where you live.
Also, remember that house prices have gone up more than 57% in the last five years. So, even if you set your price a little lower than what you wanted, you should still make a good profit.
With the help of a local real estate agent, your house will get more attention, won’t stay on the market for too long, and your chances of getting a good offer will be higher.
Right now, the right price works in the market. Mike Simonsen, the founder of Altos Research, says it this way:
“…the best homes at fair prices are going fast in most of the country.”
Bottom Line
Even though the market has changed, so has your chance to sell. You just need to set the right prices. Talk to a real estate agent in your area about how prices are changing and figure out what price will help your house sell quickly and for the most money.