Selling your house? Your asking price matters now more than ever.
There's no doubt about the fact that the housing market is slowing from the frenzy we saw over the past two years. But what does that mean for you if you're thinking about selling your house?
While home prices are still appreciating in South Florida and experts say that will continue and they’re just climbing at a much slower pace because rising mortgage rates are creating less buyer demand.
There are more homes on the market now and in a shift like this one, the way you price your home matters more than ever. During the pandemic, sellers could price their homes higher because demand was so high and the supply was so low.
This year, things are shifting and that means your approach to pricing your house needs to shift as well. Because we're seeing less buyer demand, sellers have to recognize this as a different market than it was during the pandemic. The price you set for your house sends a message to potential buyers. If you price it too high, you'll deter buyers from even looking at the house. When that happens, you may have to lower the price to try to reignite interest in your house while it sits on the market for a while.
But a price drop can be seen as a red flag to some buyers who will wonder what does that mean about the house, or if it’s in fact still overpriced. According to realtor.com, there are twice as many price reductions as there were this time last year, but price reductions are still well below pre-pandemic levels.
Since May, we have not see any deals personally that were willing to pay above appraised value and that was really the key to driving prices as high as they went over the last two years. If you price your home correctly, you can still get multiple offers potentially bid the price up and generate very strong terms for you as a seller. But if you start too high, you may have a hard time getting buyers interested and end up negotiating down to a not as strong contract.
Bottomline, homes priced right are still selling quickly in today's market.
Let's connect to make sure you price your house base on current market conditions so you can maximize your sales potential and minimize your hassle in a shifting market.
Posted by Andy Mandel on