If you’re planning to sell your home, here’s a key insight you need: despite being a seller’s market, you can’t just choose any price for your listing.

While home prices continue to appreciate in many areas, the pace has slowed due to higher mortgage rates, which are dampening buyer demand. Additionally, the growing supply of homes for sale means buyers have more choices, so your home needs to be priced right to stand out.

These two factors make setting the correct asking price more critical now than in recent years.

Some sellers are learning this the hard way, leading to more price reductions. Mike Simonsen, Founder and President of ALTOS Research, explains:

“Looking at the price reductions data set . . . It all fits in the same pattern of increasing supply and homebuyer demand that is just exhausted by high mortgage rates. . . As home sellers are faced with less demand than they expected, more of them have to reduce their prices.”

This situation arises because sellers haven’t adjusted their expectations to current market conditions. They may not be working with an agent or might not be using one who understands the local market well. Either way, they’re not basing their pricing decisions on up-to-date data, which is a mistake.

To avoid pricing errors that could deter buyers and delay your sale, you need an agent with deep knowledge of your local market. A skilled agent can help you avoid common pitfalls such as:

Setting a Price That’s Too High: Some sellers have unrealistic expectations about their home’s value, basing their price on their own needs or gut feelings rather than data. An agent can help you set a price based on facts, improving your chances of a successful sale.

Not Considering Actual Sales Data: Without an agent, sellers might use incorrect comparable sales (comps) and misjudge their home’s market value. An agent knows how to find accurate comps and use them to price your home competitively.

Overestimating the Value of Home Improvements: Sellers who have invested in home improvements may overvalue their impact. Not all upgrades yield a high return on investment. An agent understands what buyers in your area value and will price your home accordingly.

Ignoring Feedback and Market Response: Some sellers resist lowering their asking price based on feedback from open houses. An agent will remind you of the importance of flexibility and responding to market feedback to attract buyers.

Accurate pricing relies on current market conditions, and only an agent has the comprehensive data and expertise to set the right price. The right agent will use this information to create a pricing strategy tailored to the current market, ensuring your home sells efficiently.

Bottom Line:
The right asking price is more crucial now than in recent years. To avoid costly mistakes, connect with a local real estate agent.