The market is changing, so you need to price your home differently.
We all know that the market is shifting, but that brings up a great question: How do you price a home in this market? You need to get educated on this because pricing your house correctly has never been more important.
Over the last couple of years, the market has been climbing at a fever pitch. You could price a home at the top of its range and still be okay. However, that has changed. As we’re seeing more price reductions and days on market, it’s imperative that you study the comps you’re competing with now, not homes that sold 90 days ago.
A few months ago, you could price homes slightly above their comparables because you knew the market was trending up. In this new market, many homes are reducing their prices. This doesn’t mean the market is crashing, but it does mean you need to change strategies. You want to stay ahead of the market and price slightly lower than the comparables so that you look as competitive as possible.
“With all the uncertainty in this market, you need to price ahead of your competition.”
You don’t want to be caught chasing the market down. It’s easy to price the home slightly above what your neighbors sold for and have to reduce the price because it’s not selling when you should have priced the home even lower from the beginning.
When you start chasing the market down, some of the other houses you’re competing with might lower their price as well. Recently, I saw a home lower its price, and five other houses at the original price point all dropped their price by the same amount.
With all the uncertainty in this market, you need to price ahead of your competition. We’re still seeing plenty of demand for homes that are priced accordingly. If you have any questions about your home or want to know what it’s worth, call or email me. I’d be happy to help.