Tag: #homeowners

The Problem with Over Pricing

Buyers notice price first.

Most sellers come into the market with one number in mind. And it’s often the one that costs them the most. 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 below). 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.

The Price Cut Trap (And How To Avoid It)

When a home sits that long without offers, a lot of sellers will do a price reduction. According to Realtor.com, 16.7 of sellers are going that route today.

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 of market value may sound counter intuitive if you’re looking to get as much money for your house as possible, a lot of the time it really is the best strategy.

Because the goal isn’t just to list your house to see what price sticks. It’s to price it in a way that creates demand from day one.

NAR puts it best:

“While some sellers are pricing their homes higher than ever, a more ‘goldilocks’ frame of mind is a better approach to avoid price cuts and lingering time on the market.”

In other words, there’s a sweet spot. Too high, and buyers disappear. Too low, and they question the value.

But right in the middle? That’s where the magic happens.

And that’s where we come in.

We will help you understand what buyers are actually paying right now, how your home compares, and how to price it so it stands out immediately. And in today’s market, that strategy is the difference between:

  1. Listing high, watching it sit, and selling for less later.
  2. Or, pricing it right, creating competition, and putting yourself in a position to win from the start.

Bottom Line

A lot of homeowners think they can list high now and negotiate later, but that’s a mistake that costs them. And it’s the reason only 4 out of every 10 sellers are getting their asking price or more.

If you want to be in that group, it starts with getting the price right from day one.

Let’s connect so we can make sure you are. You can always find us at 508-388-1994 (Mari and Hank) or 781-423-8662 (Colleen).

Talk soon…

Mari, Hank, and Colleen

Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.

11,000 Homes Sell Every Day. When’s Yours?

Are you hesitant to sell your house because you’ve heard that no one is buying with rates and prices where they are right now? Here’s some perspective that should help.

The market isn’t at a standstill. While there weren’t as many sales last year as there’d be in a normal market, roughly 4.15 million homes still sold (not including new construction), according to the National Association of Realtors (NAR). And the expectation is that number will rise in 2025. That means more people will likely move this year, and they need homes to buy homes like yours.

But even if we only match last year’s sales pace, here’s what that looks like.

Every Minute Homes Are Selling – Literally

  • 4.15 million homes ÷ 365 days in a year = 11,370 homes sell each day
  • 11,370 homes ÷ 24 hours in a day = 474 homes sell per hour
  • 474 homes ÷ 60 minutes = roughly 8 homes sell every minute

Think about that. Just in the time it took you to read this, 8 homes sold.

On Cape Cod, home sales are up 6.8% for 2024. through November. End of the year stats should be available soon.

If you’ve been holding off selling your house because you think buyers aren’t out there, let this reassure you – there are still buyers looking to buy.

While higher home prices and mortgage rates have slowed down the market and forced some buyers to the sidelines, that doesn’t mean the market isn’t active. Many buyers are still eager to make a move because life doesn’t wait for “perfect” market conditions. (And as we wrote about last week, time in the market is a more sensible strategy than trying to time the market.)

Every day, thousands of people need to buy homes. Life goes on no matter what interest rates or prices are. People get new jobs or are transferred. Some get married and can’t keep living in their parents’ basement. Others have children and need more space.

Let’s talk. We can get your house in front of buyers while other hesitant homeowners are still pausing their plans because they think buyer demand has disappeared. Let’s work together to get your house sold.

Mari and Hank

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision.