Seller pricing for a slowing market

Seller Pricing for a Slowing Market
An unexpected byproduct of the pandemic has been a booming housing market.  As Covid-19 hit the country, the housing supply was already low, and the lockdown depressed the volume even more. As more homebuyers began looking for new homes, fueled by the ability to work-from-home and low interest rates, sellers had been experiencing a strong seller’s market.

Fast forward to now -the second half of 2022.  We are starting to see signs that point to a market slowdown.
Interest rates have risen, and the higher home prices have discouraged potential buyers from purchasing.

So, what does this mean for a seller this fall and winter? Amidst concern over the slowing market, sellers already in the market or considering listing their homes should plan for a potential slowdown.

No one likes to leave money on the table, but it’s more important than ever to have a real conversation about list price with a professional real estate agent. Whereas just a few months ago, a new home would sell the first weekend for an over-asking price, new listings should now consider that it could take longer.

Listing the property slightly below what might have been appropriate in the spring, could help generate quick interest and result in a contract.

Pricing strategy is the single most important aspect of listing a home for sale. Price dictates how quickly a home attracts attention and offers. If the market is showing signs of slowing, savvy buyers will wait. Sellers need to consider their listing price carefully to avoid price reductions later for a home that is sitting on
the market.

Remember that everything has a price.   Another thing that sellers should consider is- presale repairs and upgrades.   For the last year and half many sellers were able to put their property on the market with little or no effort as to repairs and upgrades and still get over asking price.  Those days are past.   Seller’s may now what to consider replacing flooring, paint and doing other minor repairs, before listing.  More and more listings are coming on the market every day and days on market (DOM) are getting longer, giving buyers more options to choose from. Seller’s that don’t do presale repairs may have to consider lowering the price of their property so they can compete against those that do.

To help secure a contract some sellers are starting to offer incentives such as, home warranties, closing costs and repair allowances- to name a few.

Working with a realtor who is familiar with the area is your best bet to set the right price for your home the first time.  Most realtors will offer you a complimentary a CMA (comparative market analysis) on your home.  Market value is based on the price buyers have paid for homes that are close in proximity to yours, comparable to yours and have sold recently (with in the last 3 months).

For more information about market conditions and how to list your home in this new and shifting market, reach out to a realtor today.