Why Your Asking Price Matters Even More Right Now

<article class="post-1114994 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-1114994"><span class="entry-date">July 9, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">Why Your Asking Price Matters Even More Right Now</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Why+Your+Asking+Price+Matters+Even+More+Right+Now&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fwhy-your-asking-price-matters-even-more-right-now%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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<p>If you’re thinking about selling your house, here’s something you really need to know. Even though it’s still a <a href="https://www.simplifyingthemarket.com/2024/03/14/why-todays-sellers-market-is-good-for-your-bottom-line/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">seller’s market</a> today, you can’t pick just any price for your listing.</p>
<p>While <a href="https://www.simplifyingthemarket.com/2024/06/12/home-prices-arent-declining-but-headlines-might-make-you-think-they-are/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">home prices</a> are still appreciating in <a href="https://www.simplifyingthemarket.com/2024/05/13/home-prices-are-climbing-in-these-top-cities/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">most areas</a>, they’re climbing at a <a href="https://www.simplifyingthemarket.com/2024/6/24/housing-market-forecast-whats-ahead-for-the-2nd-half-of-2024/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">slower pace</a> because higher mortgage rates are putting a squeeze on <a href="https://www.simplifyingthemarket.com/2024/05/23/questions-you-may-have-about-selling-your-house/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">buyer demand</a>. At the same time, the supply of <a href="https://www.simplifyingthemarket.com/2024/04/30/what-more-listings-mean-when-you-sell-your-house/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">homes for sale</a> is growing. That means buyers have more options and <a href="https://www.simplifyingthemarket.com/2024/6/25/how-long-will-it-take-to-sell-my-house/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">your house</a> may not stand out as much, if it’s not priced right.</p>
<p><strong>Those two factors combined are why the asking price you set for your house is more important today than it has been in recent years. </strong></p>
<p>And some sellers are finding that out the hard way. That’s leading to more price reductions. Mike Simonsen, Founder and President of <em>ALTOS Research,</em> <a href="https://blog.altosresearch.com/home-prices-have-started-to-slip-in-a-few-states" rel="noopener noreferrer" target="_blank">explains</a>:</p>
<blockquote><p><em>“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. . . </em><strong><em>As home sellers are faced with less demand than they expected, more of them have to reduce their prices.”</em></strong></p></blockquote>
<p>That’s because they haven’t adjusted their expectations to today’s market. Maybe they’re not working with <a href="https://www.simplifyingthemarket.com/2024/05/14/thinking-of-selling-you-want-an-agent-with-these-skills/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">an agent</a>, so they don’t know what’s happening around them. Or they’re not using an agent who prioritizes being a local <a href="https://www.simplifyingthemarket.com/2024/04/19/myths-about-the-2024-housing-market-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">market expert</a>. Either way, they aren’t basing their <a href="https://www.simplifyingthemarket.com/2024/05/24/your-agent-is-the-key-to-pricing-your-house-right-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">pricing decision</a> on the latest data available – and that’s a miss.</p>
<p>If you want to avoid making a pricing mistake that could turn away buyers and delay your sale, you need to work with an agent who <strong>really</strong> knows your local market. If you lean on the <a href="https://www.simplifyingthemarket.com/2024/06/10/selling-smart-why-a-real-estate-agent-makes-all-the-difference/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">right agent</a>, they’ll help you avoid making mistakes like:</p>
<ul>
<li><strong>Setting a Price That’s Too High</strong>: Some sellers have <a href="https://www.simplifyingthemarket.com/2024/04/02/why-overpricing-your-house-can-cost-you/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">unrealistic expectations</a> about how much their house is worth. That’s because they base their price on their gut or their bottom line, not the data. An agent will help you base your price on facts, not opinion, so you have a better chance of hitting the mark.</li>
<li><strong>Not Considering What Houses Are Actually Selling for:</strong> Without an agent’s help, some sellers may use the wrong comparable sales (comps) in their area and misjudge the market value of their home. An agent has the expertise needed to find true comps. And they’ll use those to give you valuable insights into how to price your house in a way that’s competitive for you and your future buyer.</li>
<li><strong>Overestimating Home Improvements:</strong> Sellers who have invested a significant amount of money in home improvements may overestimate how much those upgrades affect their home’s value. While certain improvements can increase a home’s appeal, not all upgrades are going to get a great return on their investment. An agent factors in what you’ve done and what buyers in your area actually want as they set the price.</li>
<li><strong>Ignoring Feedback and Market Response:</strong> Some sellers may be resistant to lowering their asking price based on feedback they’re getting in open houses. An agent will remind the seller how important it is to be flexible and respond to market feedback in order to attract qualified buyers.</li>
</ul>
<p>In the end, accurate pricing depends on current <a href="https://www.simplifyingthemarket.com/2024/04/29/nows-a-great-time-to-sell-your-house/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">market conditions</a> – and only an agent has all the <a href="https://www.simplifyingthemarket.com/2024/06/21/the-downsides-of-selling-your-house-without-an-agent/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">data and information</a> necessary to find the right price for your house. The right agent will use that expertise to develop a <a href="https://www.simplifyingthemarket.com/2024/05/29/how-an-agent-helps-market-your-house/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">pricing strategy</a> that’s based on current market conditions and designed to get your <a href="https://www.simplifyingthemarket.com/2024/05/10/the-sun-is-shining-on-sellers-this-summer-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">house sold</a>. That way you don’t miss the mark.</p>
<h3>Bottom Line</h3>
<p>The right asking price is even more important today than it’s been over the last few years. To avoid making a costly mistake, connect with a local real estate agent. </p>
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