Why you need to price your home right the first time in this market.
There’s no doubt that the market is shifting. It’s slowing from the frenzied pace we’ve seen since the pandemic. If you want to sell your home, how does this affect you?
Now more than ever, sellers should carefully consider the asking price they’ll set for their property. Homes are still appreciating, but there are fewer buyers because of the recent mortgage rate increases. As a result, we’re seeing more homes on the market and a bigger impact from the pricing.
For the last two years, sellers could price their homes however they wanted and still expect multiple offers. Since there are fewer buyers in the market, they can be skittish. As prices and interest rates have climbed, many buyers are starting to have affordability issues, so they’re skeptical of paying a premium for your home.
The price you set for your home sends a message to potential buyers. They can tell what’s going on in the market. They know rates have climbed, and many expect to see lower prices as a result. If you price your home too high, you risk scaring them off and you might have to reduce the price to reignite interest eventually. Unfortunately, that can be seen as a red flag. The number of price drops has significantly increased from what we’ve seen over the last two years. While it hasn’t returned to pre-pandemic levels, it’s still increasing.
There is a way you can avoid price reductions: price your home right the first time. Instead of aiming a bit higher than what you think your home is worth, price the property at what it’s worth. However, rest assured that this is still a seller’s market. Homes that are priced properly are still selling quickly.
If you’re considering selling your home, let’s connect. We can talk about your specific situation and prepare you for the market. Just call or email me.