When considering selling your house, it's essential to understand that despite the current seller's market conditions, you must carefully determine the listing price instead of selecting one arbitrarily.

In many areas, home prices are still going up, but the increase is slowing down due to higher mortgage rates impacting buyer interest. Additionally, there is a rising number of homes for sale, providing buyers with more choices. Therefore, it's crucial to price your house correctly to ensure it stands out in this changing market landscape.

The asking price you set for your house is more crucial today than it has been in recent years, due to the combination of these two factors.

Some sellers are realizing this the hard way, resulting in an increase in price reductions. According to Mike Simonsen, Founder and President of ALTOS Research, ...

““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.”
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— Mike Simonsen, Founder and President of ALTOS Research

It seems they haven't updated their expectations to align with the current market conditions. It's possible they're not collaborating with a real estate agent, which could explain why they lack awareness of the ongoing market trends. Or perhaps, their agent isn't emphasizing the importance of being well-versed in the local market dynamics. In either scenario, they might not be utilizing the most recent data to make informed decisions on pricing, resulting in a potential oversight.

To prevent pricing errors that might deter buyers and slow down your sale, it's crucial to collaborate with an agent who's extremely familiar with your area's market. When you have the support of the appropriate agent, they can assist you in steering clear of blunders such as:

• Setting a Price That’s Too High: Some sellers may have unrealistic expectations regarding the value of their home. They often determine the price based on intuition or personal desires rather than factual data. Collaborating with a real estate agent can assist in setting a price grounded in actual market information, increasing the likelihood of a successful sale at the right price.

• Not Considering What Houses Are Actually Selling for: Without the help of an agent, certain sellers might end up selecting the incorrect comparable sales (comps) in their neighborhood, leading to a misinterpretation of their home's market value. An agent possesses the necessary expertise to identify accurate comps and leverage them to provide you with crucial guidance on pricing your house competitively for both you and your potential buyer.

• Overestimating Home Improvements: When sellers put a lot of money into home improvements, they might think those upgrades raise their home's value more than they actually do. While some improvements can make a home more attractive, not all upgrades will provide a high return on investment. Real estate agents consider both the work you've done and what potential buyers in your area are looking for when determining the right price for your home.

• Ignoring Feedback and Market Response: Some sellers might hesitate to reduce their listed price after hearing feedback from open houses. Agents will stress the significance of adaptability and reacting to market input to appeal to potential buyers.

Accurately pricing your house ultimately relies on the current market conditions. An agent possesses all the essential data and information required to determine the ideal price for your home. A skilled agent will leverage this knowledge to create a pricing strategy tailored to the present market dynamics, ensuring a successful sale of your house without any pricing missteps.

Bottom Line

Ensuring the correct asking price is crucial now more than ever. Let's collaborate to prevent any expensive errors.