If youre thinking about selling your house, heres something you really need to know. Even though its still asellers markettoday, you cant pick just any price for your listing.

Whilehome pricesare still appreciating inmost areas, theyre climbing at aslower pacebecause higher mortgage rates are putting a squeeze onbuyer demand. At the same time, the supply ofhomes for saleis growing. That means buyers have more options andyour housemay not stand out as much, if its not priced right.

Those two factors combined are why the asking price you set for your house is more important today than it has been in recent years.

And some sellers are finding that out the hard way. Thats leading to more price reductions. Mike Simonsen, Founder and President ofALTOS 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.

Thats because they havent adjusted their expectations to todays market. Maybe theyre not working withan agent, so they dont know whats happening around them. Or theyre not using an agent who prioritizes being a localmarket expert. Either way, they arent basing theirpricing decisionon the latest data available and thats a miss.

If you want to avoid making a pricing mistake that could turn away buyers and delay your sale, you need to work with an agent whoreallyknows your local market. If you lean on theright agent, theyll help you avoid making mistakes like:

• Setting a Price Thats Too High: Some sellers haveunrealistic expectationsabout how much their house is worth. Thats because they base their price on their gut or their bottom line, not the data. An agent will help you base your price on facts, not opinion, so you have a better chance of hitting the mark.
• Not Considering What Houses Are Actually Selling for:Without an agents help, some sellers may use the wrong comparable sales (comps) in their area and misjudge the market value of their home. An agent has the expertise needed to find true comps. And theyll use those to give you valuable insights into how to price your house in a way thats competitive for you and your future buyer.
• Overestimating Home Improvements:Sellers who have invested a significant amount of money in home improvements may overestimate how much those upgrades affect their homes value. While certain improvements can increase a homes appeal, not all upgrades are going to get a great return on their investment. An agent factors in what youve done and what buyers in your area actually want as they set the price.
• Ignoring Feedback and Market Response:Some sellers may be resistant to lowering their asking price based on feedback theyre getting in open houses. An agent will remind the seller how important it is to be flexible and respond to market feedback in order to attract qualified buyers.

In the end, accurate pricing depends on currentmarket conditions and only an agent has all thedata and informationnecessary to find the right price for your house. The right agent will use that expertise to develop apricing strategythats based on current market conditions and designed to get yourhouse sold. That way you dont miss the mark.

Bottom Line

The right asking price is even more important today than its been over the last few years. To avoid making a costly mistake, call me, Marie McLaughlin 727-858-7569.

Source: https://www.keepingcurrentmatters.com/2024/07/09/why-your-asking-price-matters-even-more-right-now/