Top Tips for Selling in Today’s Market
A few years back, homes were selling rapidly, often with multiple offers well above asking price. It was a market where sellers had the upper hand, and buyers were eager to compete.
Today’s housing market has shifted. With more inventory available, buyers are becoming more selective. As a result, homes are taking longer to sell, and more sellers are reducing their prices.
So, how can you stay competitive? It all begins with one crucial step: pricing your home correctly from the beginning. In today’s market, that decision is more important than ever—and can be the difference between a quick sale and a listing that lingers.
A Growing Gap Between Buyer and Seller Price Expectations
A recent Realtor.com survey found that 81% of home sellers expect to receive their asking price or higher. However, sales data reveals an increasing disconnect between sellers’ expectations and buyers’ actual offers.
An annual report from the National Association of Realtors (NAR) reveals that 44% of recently sold homes sold below their asking price. Additionally, one in three sellers reduced their price at least once before closing the sale. This suggests that seller expectations may not fully align with the current market reality.
Refer to the graph below, which utilizes Redfin data to illustrate the growing gap between asking prices (blue line) and actual sale prices (green line).
This highlights an important point: many buyers are not prepared to meet the prices sellers are asking. While you can still achieve a strong sale price, it’s essential to begin with a listing price that aligns with current buyer expectations.
The Consequences of Overpricing Your Home
Setting a high initial price might seem strategic to allow negotiation flexibility. However, an overpriced home often lingers on the market and can discourage potential buyers.
Buyers are discerning, and when a home remains on the market for an extended period, they often question its condition. This can result in fewer showings, diminished interest, and eventually a price reduction to attract buyers again. As Realtor.com explains:
“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.”
The longer a home stays unsold, the more challenging the sale can become.
The Opportunity Is Still There—With the Right Price
Avoid this mistake by working with a Benson & Mangold agent who’s familiar with local market conditions when pricing your home.
Your agent will analyze recent local sales, buyer behavior, and inventory to pinpoint the ideal price for your neighborhood—since it varies by location.
Keep in mind, home prices have increased over 57% in the last five years. So, even if you price slightly below your target, you’re still likely to make a solid profit.
With the guidance of a local agent, you’ll draw more interest, avoid prolonged market time, and boost your likelihood of securing a solid offer.
In the current market, pricing your home correctly is key. As Mike Simonsen, Founder of Altos Research, explains:
“. . . the best properties, well priced are selling quickly in most of the country.”
In Summary
The market has changed, but your selling opportunity hasn’t. With the right price, your home can sell quickly and for the best price. Get in touch with a Benson & Mangold agent to explore local trends and find the ideal price.
