When listing your home, the primary aim is to achieve a swift sale at the most favorable price. However, many sellers are currently aiming too high, not fully recognizing the market shift due to increased inventory. This has led to a rise in price reductions, which are often unnecessary.
According to Realtor.com data, February saw the highest number of price cuts compared to any February since 2019. This indicates a return to more typical market conditions, as 2019 was the last normal year for real estate.
The market is no longer the heated seller's market experienced a few years ago. Prices achieved during the pandemic peak may not be realistic now, necessitating a reset in seller expectations.
If you overprice and subsequently reduce your price, it may lead to receiving lower offers compared to pricing it correctly initially. The key to avoiding this pitfall lies with your real estate agent.
How an Agent Ensures Accurate Pricing
A competent agent relies on data and current market trends to determine your home's true value. They set a realistic price to attract serious buyers. Your agent might even suggest pricing slightly below market value to generate interest and competitive offers.
Here's how agents determine the optimal price:
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Analyzing recent sales: They assess what similar homes in your area have sold for, not just their listing prices.
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Examining local market trends: Your home's value reflects what buyers are actually willing to pay in your area.
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Crafting a strategic pricing plan: They aim to set a price that attracts attention and creates urgency among buyers.
Some sellers overlook their agent's advice, opting to start high to test the market. The belief is that they might get their full asking price or have more room for negotiation. However, overpricing often leads to:
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Disinterest: Budget-conscious buyers may bypass overpriced homes.
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Extended market time: Homes that languish unsold suggest issues to potential buyers, complicating future sales.
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Lower final sale price: Homes that undergo price cuts often sell for less than if they had been priced appropriately from the start.
Data from the National Association of Realtors (NAR) shows that homes selling within the first four weeks typically achieve full price. This is common for homes priced at or below market value, attracting interest and competitive offers. Conversely, homes priced too high see diminished interest over time, often necessitating price reductions.
Bottom Line
Don’t set your price too high, watch your home sit, and then have to cut the price. Talk to the Vano Maurry team, we assess the market, provide real-time pricing strategy, create strong buyer interest to attract offers, and negotiate for a quick and successful sale at the highest possible price.
Article content courtesy of Keeping Current Matters
