Home owners wanting to sell will be asking how to price a home in a correcting market – if they understand that things are shifting right now.
When real estate values are rising, homes that are well priced, well staged, well marketed, well photographed, and easy to sell tend to sell quickly and for top dollar. In that situation, it’s almost impossible to price a property too low, because buyers will rush in and bid it up. If it’s priced extremely aggressively, it may create a larger crowd of willing buyers and the ultimate effect may be a higher than expected sale price. That’s a strategy that often works well in a hot market.
That’s less effective now, as conditions have mellowed significantly due to dramatic changes in inflation, the stock market values plummeting, and interest rates rising sharply. The question, then is how to price a home in a correcting market? Or one that is flattening or generally cooler?
There are tips at the bottom of this post, but if you want to sell your home now, when the market is cooling rapidly, here are some basic concepts on how to price a home in a correcting market:
- understand that the odds of selling have decreased, and to get yours sold it will need to be the most appealing in terms of price and condition
- serious sellers will want to position their home as the best value available today and appeal to both the buyers and to their agents
- consider the trajectory of the market and if it continues as we see today, where the values will be a month from now – that is likely your pricing target