The Importance of Setting the Right Asking Price
Home prices are still rising, but they’re doing so at a slower rate due to higher mortgage rates. At the same time, the number of homes for sale is increasing. This means buyers have more options, and your home might not stand out if it’s not priced correctly.
These two factors make your asking price more critical now than in recent years.
Some sellers are learning 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.”
This situation often arises because sellers haven’t adjusted their expectations to the current market. They might not be working with an agent or they’re not using an agent who really knows the local market. As a result, they’re not basing their pricing decisions on the latest data – a critical mistake.
To avoid pricing errors that could deter buyers and delay your sale, work with an agent who truly understands your local market. The right agent can help you avoid common mistakes like:
Setting a Price That’s Too High: Some sellers have unrealistic expectations about their home’s worth, basing their price on personal beliefs rather than data. An agent helps you set a price based on facts, increasing your chances of success.
Using Incorrect Comparable Sales: Without an agent’s guidance, some sellers might rely on the wrong comparable sales (comps) and misjudge their home’s market value. An experienced agent can find accurate comps and provide valuable insights to competitively price your home.
Overestimating Home Improvements: Sellers who have invested heavily in home improvements might overestimate their impact on the home’s value. While some upgrades can enhance appeal, not all will yield a high return. An agent considers what you’ve done and what buyers in your area want when setting the price.
Ignoring Feedback and Market Response: Some sellers resist lowering their asking price based on feedback from open houses. An agent emphasizes the importance of being flexible and responding to market feedback to attract qualified buyers.
In conclusion, accurate pricing depends on current market conditions – and only an agent has the data and knowledge to determine the right price for your home. The right agent will use this expertise to develop a pricing strategy that aligns with current market trends, ensuring your home sells efficiently.
Final Thought
The right real estate agent will guide you to set the right price and avoid your house from getting stuck on the market; this is probably the most important aspect of selling your home in today’s real estate market. To do this, you have to know what’s happening with home prices in your area and understand the factors that are affecting the market right now. An experienced agent will know how to strategically market your home for today’s home selling climate, has a wealth of connections with those in the community and can generate more interest in your listing than you could’ve ever imagined. An agent’s connection with stagers, photographers, and marketing experts can ensure your home is featured in the best light. The right guidance will enable you to complete the process with minimal expenses and delays while getting Top Dollar For Your Home.
If you’re seeking an analysis of your current situation or want advice on your best next move, call Betty today! (818) 270.7090.
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