Last Updated on June 29, 2024
If you’re thinking of listing your home soon, you might be contemplating how to price it. You may have heard we’re in a seller’s market, and while that’s true, the way sellers priced their home 2 years ago in the post-pandemic frenzy of a market is not an advisable strategy today.
Inventory is easing up considerably, and is predicted to reach 5-year highs in the second half of the year. While this increase in housing availability isn’t likely to shift the pendulum enough to favor buyers over sellers, it does reframe the conversation about home offering prices.
Pricing your home in today’s market
Our advice to sellers is to price your home correctly from the onset. In the market right now there are two buckets:
- In the first bucket are homes that are priced right and in great condition. These homes are selling in an average of 10 days.
- In the second bucket bucket, there are homes that aren’t priced right and aren’t in great condition, and these homes are sitting for 60-70 days, and are often sold after a price reduction or two.
The correct way to price your home is to allow the market to create the price point. Rather than pricing your home what you think it’s worth, allow the market to drive the sale price for maximum exposure.
Even though there are fewer buyers in the marketplace than this time last year, homes that are priced well and in good condition are still in high demand.
Just to give you an idea of what we’re seeing nationally, 29% of homes are selling over asking and the average amount of offers each home is receiving is 3.1, so despite fewer buyers in the market, homes are still receiving multiple offers and closing for over asking price.
The downside of overpricing your home
While it’s true that there are more buyers than homes available, buyers will look the other way when it comes to homes with an inflated offering price. Buyers today are savvy, and given interest rates coupled with housing price appreciation, an overpriced home will sit stagnant on the market.
In a fast-paced market like we’re in now, any home that sits and sits leaves buyers wondering what’s wrong with it, and the longer it sits, the more this thought solidifies in buyers’ minds. Typically, homes in this state end up selling only after significantly reducing the price or an extended period on the market.
For the best results when selling your home, we recommend you hire an experienced agent that you trust with a track record of success. It’s important that the relationship be a partnership and that the agent facilitates you in achieving your goals and objectives.
Find other helpful articles on selling your home here.
