You can still get top dollar if you price your home correctly.
If you’ve been paying attention to housing market news, you’ve probably heard about decreasing sales, rising interest rates, and increasing inventory. Do these factors mean we’re heading for a housing market crash? According to the experts, the answer is no. Instead of crashing, our housing market is correcting.
During the crazy housing market caused by low interest rates and the increased flexibility of remote work, prices skyrocketed. In fact, the average home price increased by 10.2% from July 2021 to July 2022. The truth is that the crazy pandemic market wasn’t sustainable. According to Moody Analytics, 210 metro areas were overvalued by 25% or more.
If you’re looking to sell your home soon, what does this all mean for you? Fortunately, the media claims of a housing crash are exaggerated. You can still sell for top dollar in this market, but you have to be smart about how you approach things. Here are three tips to help you get top dollar for your home in a correcting housing market:
1. Don’t price your home too high. If you do, you could end up “chasing the market.” In this scenario, your initial price is too high, and buyers won’t look at your home. You could try lowering your price, but by that point, the market may have changed again. This is a seller’s worst nightmare—if it happens, you may even have to take your property off the market and try again later.
“You have to be careful about how you price your home.”
2. Work with a real estate professional to look at comparable sales in your area and find a goldilocks price. This isn’t too high or too low, but just right. This can be difficult to do on your own in a correcting market, but professionals have access to market data that will make the process much easier. The only issue with this option is that if you base your price on old data, the market may shift again. Then, your price could risk being too high, and you’ll face all the same problems as the first option.
3. Price your home slightly below market value on purpose. This is my preferred option. It seems odd, but this will guarantee that your home is the most attractive deal in your area. If everything goes according to plan, buyers will flock to your house, and the competition among them will naturally bring the price up to or above market value. If your home doesn’t get bid up to over the asking price that is a good indication the current market won’t support a higher price. This is a fantastic option to get offers in quickly and avoid sitting on the market for too long.
The bottom line is that sellers can still achieve fantastic results in this market as long as they do their research and price their homes correctly. If you would like to discuss which strategy might be best for you, don’t hesitate to call or email me. Make it a great day!
