Becareful with Your Asking Price
There is no denying that the housing market has slowed since the frenzy of the previous two years. But if you're considering selling your house, what does that mean for you?
While experts predict that home prices will continue to rise in most markets, they are doing so at a slower rate as a result of declining buyer demand brought on by rising mortgage rates. As a result, there are more houses available. The way you price your home is more important than ever during a change like this one.
What's Different About the Housing Market Today?
Due to the pandemic's extreme supply and demand imbalance, home sellers were able to raise their asking prices. Things are changing this year, so your strategy for setting the price of your home must also change.
Sellers must understand that this market is different from the one that existed during the pandemic because there is less buyer demand. What's at risk if you don't is as follows.
Why Pricing Your House at Market Value Matters?
Your home's asking price conveys information to prospective buyers. Price it too high and you run the risk of scaring away potential buyers.
When that occurs, you might need to reduce the asking price in an effort to rekindle interest in your home after it has been sitting on the market for some time. Be aware though, as some buyers may view a price reduction as a warning sign and wonder what it means about the property or if it really is still overpriced. According to realtor.com, some sellers aren't adjusting their expectations to the current market, and this is having the following effects:
“. . . the share of listings with a price cut was nearly double its year ago level even as it remains well below pre-pandemic levels.”
You should set the price correctly at the outset to save yourself the hassle of having to reduce it later. A real estate advisor is skilled at establishing the ideal asking price. They weigh market trends and buyer demand, the condition of your home, the value of homes in your neighborhood, and other factors to determine the appropriate price.
Not to mention that setting a fair price for your home in line with current market conditions increases the likelihood that more buyers will be interested in it. As a result, there is a better chance that the item will sell quickly and attract stronger offers.
Why You Still Have an Opportunity When You Sell Today?
Rest assured that it's still a sellers' market, so planning ahead and working with an agent to set your price at the going rate will still reap great rewards. The National Association of Realtors' (NAR) Chief Economist, Lawrence Yun, says:
“Homes priced right are selling very quickly, but homes priced too high are deterring prospective buyers.”
Mike Simonsen, the Founder and CEO of Altos Research, also notes:
“We can see that demand is still there for the homes that are priced properly.”
In the current real estate market, houses are selling quickly when priced correctly. In order to maximize your sales potential and reduce your hassle in a changing market, work with a real estate professional to ensure that you price your home based on current market conditions.
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