Why Are So Many Sellers Lowering Their Home Prices Right Now?
If you’ve been looking at homes for sale lately, you may have noticed something: more sellers are lowering their asking prices.
So, what’s happening?
It doesn’t necessarily mean the housing market is crashing. In many cases, sellers are simply adjusting to a market that is much more competitive than it was a few years ago.
Buyers Have More Choices
One of the biggest changes in today’s market is inventory. Buyers have more homes to choose from, which means they can take their time and compare properties.
If two similar homes are on the market and one is priced noticeably higher, buyers are likely to focus on the better value.
That makes pricing correctly from the beginning more important than ever.
Overpricing Can Cost Sellers More in the Long Run
One of the biggest mistakes I see sellers make is starting with a price that is higher than the market supports because they want to “leave room to negotiate.”
The problem is that buyers today are doing their homework. They are looking at recent sales, competing listings and how long homes have been sitting on the market.
If your home is overpriced, you may get very little activity when the listing is new — exactly when it has the most attention.
Eventually, a seller may have to reduce the price to attract buyers.
A Price Reduction Doesn’t Always Mean Something Is Wrong
A price reduction can simply mean the seller and the market weren’t initially on the same page.
Sometimes a home is priced based on what the seller needs to get rather than what buyers are currently willing to pay.
Those are two very different numbers.
The goal isn’t to give your home away. The goal is to position it correctly against the competition so buyers see the value.
What Should Sellers Do?
Before putting your home on the market, look carefully at:
Pricing Is a Strategy, Not a Guess
After more than 29 years in real estate with RE/MAX, I’ve seen many different markets. One lesson has remained consistent: sellers who understand the market and price strategically from the beginning generally put themselves in a much stronger position.
If you’re thinking about selling, don’t simply ask:
“What do I want to sell my home for?”
The better question is:
“What price will make buyers want to choose my home over the competition?”
That is where good pricing strategy can make a real difference.
Recent comparable sales
Current competing listings
Condition and presentation
Location and features
How your home compares to other homes buyers can purchase at the same price
Sue Monroe
RE/MAX Leaders
Over 29 Years of Real Estate Experience
303-717-7349
suemonroe@remax.net
www.suemonroe.com
Global Brand. Local Expertise.
