Homes were selling quickly a few years ago and receiving numerous offers that were significantly higher than their asking price. Customers seemed to be waiting in line at the door regardless of the pricing you set.

The housing market of today, however, is different. As inventory has increased, buyers are becoming more picky. Houses are remaining in place for a little while. Additionally, more vendors are being forced to lower their pricing.

How do you manage to win, then? Setting your home's initial price is the first step in the process. That is more important than ever today and has the power to make or break your business.

Buyers and Sellers Have a Genuine Price Disconnect

According to a recent Realtor.com survey, 81% of property sellers think they will receive at least their asking price. However, real sales data indicates that the difference between what buyers are ready to pay and what sellers expect is widening.

In actuality, 44% of recently sold homes sold for less than the asking price, according to an annual report from the National Association of Realtors (NAR). Additionally, before the house sold, one in three sellers had to lower their price at least once. It's an indication that expectations might not be entirely in line with the reality of today.

The Redfin graph below illustrates how asking prices (blue line) are increasingly higher than actual sales prices (green line):

This indicates that not all purchasers are prepared to pay the prices that many sellers are requesting. You can still sell for a high price, but you must start with a price that is in line with what buyers are prepared to pay in the current market.

What Takes Place If Your Home Is Overpriced?

Setting a high initial price for your home could seem like a good idea since it gives you more negotiating leverage. However, the truth is that a home that is too expensive may remain on the market and deter potential purchasers.

Buyers are intelligent. Upon seeing a house that has been abandoned for some time, they begin to question whether it is in good condition. Less interest, fewer showings, and ultimately a price reduction to get people's attention can result from that. In the words of Realtor.com:

“By getting the right price early on, you can increase the odds buyers will be interested in the home. In turn, this decreases the chances the home will sit on the market for a lengthier timeline, also reducing the odds you’ll need to lower the listing price.”

Selling a house might be more difficult the longer it sits on the market.

If you price your home correctly, you still have a fantastic opportunity.

It's crucial to rely on an agent who is aware of local conditions when determining your asking price in order to avoid making this error.

The pricing sweet spot for your neighborhood will vary depending on where you reside, so your realtor will consider buyer patterns, inventory levels, and recent local sales.

It's also important to remember that throughout the last five years, property prices have increased by more than 57%. Therefore, you'll probably still be in a wonderful position financially even if you price a little lower than the amount you had in mind.

By working with a local real estate agent, you can increase the amount of interest in your home, prevent it from being on the market for too long, and increase the likelihood that you will receive a competitive offer.

The right pricing works in the current market. As Mike Simonsen, Founder of Altos Research, explains:

“. . . the best properties, well priced are selling quickly in most of the country.”

Final Note

Your selling opportunity hasn't altered, but the market has. You just need the correct pricing package. To find out what price will help your house sell quickly and for the most money, speak with a local real estate agent about current pricing in your neighborhood.