Summer selling season has arrived. Unfortunately, house sellers who expected sky-high prices and several bids may be disappointed by the market’s weakening. Pricing a home becomes crucial in a falling market.
Pricing your home in a softening market
The first step is to recognize that the market has shifted. In an uncertain market, buyers will not overpay for a home. Whereas it might have made sense a few months ago to “test the market” and set an aggressive price, sellers who try that method today will waste valuable time and risk an even slower market when the home sells.
Home Value Truths
- What you paid for your home doesn’t affect its value.
- Your asking price does not affect its value.
- What it might have sold for 2 months ago does not affect its value.
- What your agent tells you about price does not affect its value
The value of your home is determined by what a qualified buyer in today’s market is willing to pay for it, comparing it to others on the market for sale.
Pricing Strategy in a Softening Market
Regardless of whether you are in an increasing or declining market, your pricing strategy should be the same: price the home ahead of the market. In a decreasing market, this implies pricing your home somewhat lower than the most recent comparable.