Home Pricing Strategies in Today’s Shifting Market
We seem to be in a shifting market. We’re finding that many homeowners, viewing the past 24 months of hot home sales, tend to want to price their home just a bit higher than the market will bear, in the hopes that the market will give them room to negotiate. However, we’ve recently experienced a shift, where homes are staying on the market longer and selling for just a tick in price lower. In today’s real estate market, with more houses coming to market every day and savvy buyers searching for their dream home, setting the right price for your house is one of the most important things you can do.
According to CoreLogic’s latest Home Price Index, home values have risen at over 6% a year over the past two years, but have started to slow to 4.4% over the last 12 months. By this time next year, CoreLogicpredicts that home values will be 4.6% higher.
With prices slowing from their previous pace, homeowners must realize that pricing their homes a little OVER market value to leave room for negotiation will actually dramatically decrease the number of buyers who will see their listing! (see the chart below)
Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price their house so that demand for the home is maximized. By doing so, the seller will not be negotiating with a buyer over the price, but will instead have multiple buyers competing with each other over the house.
The key to selling your house in 2019 is making sure your house is Priced To Sell Immediately (PTSI)! That way, your home will be seen by most buyers and will sell at a great price before more competition comes to market!
If you are debating listing your house for sale, give me and my team a call so we can help price your home appropriately for your area and maximize your exposure during this shifting market. We’re at 505-504-1101.