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What Happens When You Price Your Home Too High
Published 1 month, 3 weeks ago
Description
Most sellers come into the market with one number in mind. And it’s often the one that costs them the most. That’s their asking price. A survey from Realtor.com shows about 8 in 10 (80%) of sellers expect to sell at or above their asking price today. But here’s where things get interesting. In reality, only about 4 out of every 10 (roughly 40%) actually do. That’s a big gap. And it’s where a lot of sellers get caught off guard. So, why the disconnect? And how can you set yourself up to be one of the 4 in 10 that get top dollar? Let’s break it down.
What Should You Really Expect To Get for Your House? That 40% may sound low at first, but it’s not. If you look back to the last typical year for the housing market (2019), what we’re really seeing is a return to what’s normal (see chart on my 'Jim Mazziotti 'and 'Senior To Seniors' FACEBOK page). If anything, slightly more homeowners are able to sell above list price today compared to 2019: It only feels low because the past few years were anything but typical.
Between 2020 and mid-2022, buyer demand was sky-high and the number of homes for sale was at record lows. Almost everything sold over asking. Now, the market has shifted. There are more homes for sale. Buyers have more options. And that means they’re more selective about how they spend their money. In other words, the rules have changed – and pricing like it’s still 2021 is where sellers run into trouble. You have to meet the market where it is if you really want to cash in big.
What Happens When a Home Is Priced Too High Here’s the reality. It’s easy to think pricing high gives you room to negotiate. But it usually does the opposite. When your home is priced above what buyers expect, in this market, they don’t negotiate. They move on. Because buyers notice price first. And if your home doesn’t line up with similar options in your area, it may not even get a showing. And that’s when things start to snowball:
But here’s the real problem. Even a price cut doesn’t guarantee a sale. In fact, some buyers will see a reduction as a sign something’s wrong with the house – even when nothing is. That’s why data from the National Association of Realtors (NAR) shows the longer a home sits, the bigger that price cut tends to be to attract buyers back: So, what starts as a strategy to “leave room” for negotiate can end up costing you more in the long run.
Why Pricing Right from Day One Matters Even though listing at or even just shy o
What Should You Really Expect To Get for Your House? That 40% may sound low at first, but it’s not. If you look back to the last typical year for the housing market (2019), what we’re really seeing is a return to what’s normal (see chart on my 'Jim Mazziotti 'and 'Senior To Seniors' FACEBOK page). If anything, slightly more homeowners are able to sell above list price today compared to 2019: It only feels low because the past few years were anything but typical.
Between 2020 and mid-2022, buyer demand was sky-high and the number of homes for sale was at record lows. Almost everything sold over asking. Now, the market has shifted. There are more homes for sale. Buyers have more options. And that means they’re more selective about how they spend their money. In other words, the rules have changed – and pricing like it’s still 2021 is where sellers run into trouble. You have to meet the market where it is if you really want to cash in big.
What Happens When a Home Is Priced Too High Here’s the reality. It’s easy to think pricing high gives you room to negotiate. But it usually does the opposite. When your home is priced above what buyers expect, in this market, they don’t negotiate. They move on. Because buyers notice price first. And if your home doesn’t line up with similar options in your area, it may not even get a showing. And that’s when things start to snowball:
- A high price gets less interest from buyers.
- Less interest means fewer offers.
- And fewer offers usually means more time on the market.
But here’s the real problem. Even a price cut doesn’t guarantee a sale. In fact, some buyers will see a reduction as a sign something’s wrong with the house – even when nothing is. That’s why data from the National Association of Realtors (NAR) shows the longer a home sits, the bigger that price cut tends to be to attract buyers back: So, what starts as a strategy to “leave room” for negotiate can end up costing you more in the long run.
Why Pricing Right from Day One Matters Even though listing at or even just shy o