Pricing Your Home in a Correcting Market
How do I price my home in a correcting market? Many people are asking this question lately. With this, there are a few common things people are talking about: rising interest rates, decreasing sales, and increasing inventory. Does that mean we are going to experience a housing crash? I don’t think so. After two years of an incredibly hectic market, we’re just settling down to a normal seller’s market. Therefore, how do we price accordingly?
Don’t be overpriced. There are many things you can do to get your home ready, but this is not the kind of market to test a higher price. In the previous market, we could take the last sale and ask a little higher, but that is no longer the case. The last thing you want to do is chase the market down, as that leaves you looking desperate and open to lowball offers.
“We’re just settling down to a normal seller’s market.”
Price below the market value. This works well because, as the market is shifting down, we’re already below the sales that we are comparing to. If you have a lot of comparable sales that are waiting on the market, you can undercut them and sell quickly.
“Test market” your price. How do you test the market without actually being on the market? We use a comprehensive, pre-market strategy called “test marketing”. We come up with a price range and shop it around to buyers in the area, like a pre-sale. Then we gather that feedback and use it to prepare your home and get it priced accurately for the market while building interest in the home.
These are my favorite strategies for pricing in a correcting market. To learn more about them, reach out to me for a consultation. Call me today, I’d be happy to help you out.