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DANGERS OF OVER-PRICING YOUR HOME IN A COOLING MARKET

Friday, August 12, 2022   /   by Jake Uriegas

DANGERS OF OVER-PRICING YOUR HOME IN A COOLING MARKET

Don't make THIS mistake when listing your home…

After two years of soaring home prices in a red-hot real estate market, it can be easy to fall into the trap of Pricing Your Home Too High.

While sellers have been able to name their price over the past 24 months, recession fears and increasing interest rates are starting to hit buyers' pockets, and the housing market is cooling off. 

Which means buyers don’t have as much pressure to jump on the first house they see listed anymore.


Yes, inventory remains low, and sellers are still seeing great offers for their homes, but with demand slowing, pricing your home right is more critical than ever.


Homes priced on the higher end are spending more time on the market than they would have earlier this year or in 2021, and sellers will soon have to start negotiating with buyers with less spending power than they had a year ago.


While you may still get lucky with the odd buyer willing to splurge in order to be in a particular neighborhood, in general, overpricing your home will cost you THOUSANDS off the bottom line.


And if you are someone that wants to price it high and then reduce it later…That will cost you thousands too.


Think of it this way – dropping your asking price is much more difficult than raising it.


Buyers see a price drop as leverage and an indicator that your home isn't worth its price tag, while an increase in your asking or bidding war sends the message that demand for your home is high and they should get an offer in before the number goes up again.


Photo by MART PRODUCTION