Last updated on June 29, 2024
If you're thinking about putting your home on the market soon, you may be thinking about how to price it. You may have heard that we're in a seller's market, and while that's true, the way sellers priced their homes 2 years ago in the frenzy of a post-pandemic market isn't an advisable strategy today.
Inventory is declining sharply and is projected to hit five-year highs in the second half of the year. While this increase in housing availability is unlikely to change the situation enough to favor buyers over sellers, it does reframe the conversation about home asking prices.
How to Price Your Home in Today's Market
Our advice to sellers is to price their home correctly from the start. In today's market there are two categories:
- The first group includes homes that are fairly priced and in excellent condition. These homes sell in an average of 10 days.
- In the second group, there are homes that are not priced right and are not in great condition, and these homes sit idle for 60 to 70 days and often sell after a price reduction or two.
The right way to price your home is to let the market determine it. Instead of pricing your home based on your opinion, let the market determine the sales price for maximum exposure.
Although there are fewer buyers on the market than this time last year, well-priced homes in good condition are still in high demand.
Just to give you an idea of what we're seeing nationally, 29% of homes sell over asking and the average number of offers each home receives is 3.1, so even though there are fewer buyers On the market, homes are still receiving multiple offers and closing above the asking price.
The downside of overvaluing your home
While it is true that there are more buyers than available homes, buyers look the other way when it comes to homes with an inflated asking price. Today's buyers are savvy, and given interest rates coupled with home price appreciation, an overpriced home will sit on the market.
In a fast-paced market like the one we live in now, any home that stays and stays leaves buyers wondering what's wrong with it, and the longer it stays, the more this thought solidifies in buyers' minds. Typically, homes in this condition end up selling only after significantly reducing the price or a prolonged period on the market.
For the best results when selling your home, we recommend that you hire an experienced agent whom you trust and who has a track record of success. It is important that the relationship is collaborative and that the agent helps you achieve your goals and objectives.
Find other helpful articles on how to sell your house here.
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