Why Setting the Right Asking Price is Crucial Now More Than Ever

Pricing Your Home in Today’s Market: Why You Can’t Just Wing It

Thinking about selling your home? Here’s something you should know: even in a seller’s market, slapping any old price on your listing just won’t cut it.

Yes, home prices are still on the rise in most areas, but they’re not climbing as fast as they used to, thanks to higher mortgage rates putting a damper on buyer demand. And with more homes popping up for sale, buyers have options. So, if your home isn’t priced right, it might just blend into the background.

These two factors are why nailing the right asking price is more crucial now than ever.

Some sellers are learning this the hard way. Price reductions are becoming more common, and here’s why:

Mike Simonsen, Founder and President of ALTOS Research, puts it this way: “Looking at the price reductions data set . . . It all fits in the same pattern of increasing supply and homebuyer demand that is just exhausted by high mortgage rates. . . As home sellers are faced with less demand than they expected, more of them have to reduce their prices.”

Translation? Sellers who haven’t adjusted to the current market are getting a reality check. Maybe they’re not working with a savvy agent, or they’ve underestimated just how much the market has shifted. Either way, they’re missing the mark.

If you want to avoid the dreaded price reduction and keep buyers interested, you need an agent who truly knows the local market. The right agent will help you steer clear of these common pricing blunders:

1. Setting the Price Too High

It’s easy to get carried away with how much you think your home is worth, especially if you’re basing that number on your gut or what you wish it was worth. But here’s the thing: the market doesn’t care about feelings—it cares about facts. An experienced agent will help you set a price based on real data, not wishful thinking.

2. Ignoring What Homes Are Actually Selling For

Without an agent, you might pick the wrong comparable sales (comps) and completely misjudge your home’s value. A local market expert knows how to find the true comps that matter. They’ll give you the insights needed to price your home competitively, so it stands out to buyers.

3. Overestimating the Impact of Home Improvements

Just because you spent a small fortune on home improvements doesn’t mean buyers will automatically pay more. Not all upgrades offer a great return on investment. An agent will help you understand what buyers in your area are actually willing to pay for and price your home accordingly.

4. Ignoring Feedback and Market Response

Some sellers resist lowering their asking price, even when the market is clearly saying it’s too high. A good agent will remind you to stay flexible and responsive to feedback. Being open to adjustments is key to attracting serious buyers.

Bottom Line

In today’s market, getting the asking price right is more important than ever. Don’t leave it to chance—work with a professional who knows the market and can be upfront and honest with you about your home.