When selling your house, the price you choose isn’t just a number, it’s a strategy. And in today’s market, that strategy needs to be sharp.
The number of homes for sale is climbing (inventory is up 35-40% from one year ago). And that means buyers have more choices and can be more selective. If your price doesn’t line up with what else is out there, they’ll scroll right past it and go on to the next one.
Pricing right from the start is your best move.
Overpricing Comes at a Cost
And more sellers are finding that out the hard way. They list their house based on how things were 6-12 months ago – or based on a neighbor’s sale that happened under completely different circumstances. Then, when their house doesn’t sell, they’re left with three tough choices:
- Drop the price: Cutting the price might help get more eyes on the house again, but it can also trigger red flags. Buyers may wonder what’s wrong with it. And that’s going to impact any offers you get after the price cut.
- Take it off the market: Some sellers give up on the idea of selling right now. The worst part about this is it means putting their present and future plans on the back burner. The dream of more space, downsizing, or relocating gets abandoned.
- Rent it out: Others go the landlord route, but managing tenants and navigating leases isn’t always the simple fallback it seems. Renting can work, but it’s often a lot more hassle with smaller rewards than people expect.
None of those options were part of the original plan, and honestly, none of them are where you should end up if you wanted to sell. Here are some things to consider for a better outcome.
Where You Live Makes a Difference
While the number of price cuts is up nationally, data shows some parts of the country are seeing far more of them than others. It all comes down to how much inventory has grown in that area (see map below):
As Realtor.com explains:
“Regionally, price reductions in June were significantly more common in the South and West (23% of listings) than they were in the Northeast (13% of listings), reflecting the inventory divergence across these regions.”
This means pricing isn’t one-size-fits-all. What’s happening nationally does not reflect what’s happening in our zip codes. Depending on price point and community, over one-third of active listings in the Central Valley are taking price reductions.
Here’s What Else We Know
You don’t want to just toss out a number:
“Well-priced homes are more likely to sell quickly, but pricing your home to sell quickly and for maximum dollar requires strategy and knowledge of your local market. You need to have a clear-eyed view of your home in relation to the competition, and knowledge about whether you’re in a buyers or sellers market. It also helps to know what buyers in your area can afford.” – Zillow
Strategic Steps to Better Pricing
- When considering other sales and listings, we are not just looking at being “comparable”, but rather “competitive”. What price will “win” the sale and your objectives.
- Homes don’t sell at a finite price, but rather within a “range” and where we sit within that range depends on your goals.
- Have a “soft opening” (delayed listing) before we hit the market to gain feedback, interest, and possibly a quicker sale for more money.
Bottom Line
Overpricing can lead to tough choices you never want to face. But with the right price, and the right guidance, you can skip the stress and sell with confidence. Let’s connect so you have a pricing strategy that works for today’s market and gets you where you want to go.
Let’s talk about it. Contact Me!
