In a shifting market, pricing is more important than ever

Pricing Your Home to Get Offers

The housing market is shifting. Does that mean the party over for home sellers? Did you miss your opportunity to get a great price for your home?

The short answer is ‘no’, but you can’t just plant a sign in the front yard and put your feet up anymore. Due to rising interest rates, the buyer pool has been shrinking. You need to understand how to price your house right so your home doesn’t languish on the market.

In this blog, I share three home pricing strategies and explain which strategy is the most likely to get your home sold quickly and for the most money.

Don’t miss my Pro Tip explaining how to determine the right price for your house now.

Strategy No. 1 Leave Room for Negotiation

Typically, home sellers use one of three strategies to price their homes for sale.

First, there’s the “price it high to leave room for negotiation” strategy. The seller chooses to price the home at the top of the market and will considering negotiation for a lower price if no better offers emerge.

Strategy No. 2 Market Value

Strategy number two is the “price your home at market value”. This strategy involves working you’re your agent to look closely at comparable homes for sale in the area and pricing your home right in the middle of the pack. 

This strategy will encourage buyers to look your home but may not be enough to make your home stand out from the competition because buyers know they have other choices in the same price range.

Strategy No. 3 Price to Get the Most Interest

Although it seems counter intuitive, pricing a home just below comparable homes on the market will generate the most buyer interest and make buyers feel like they are getting a deal. You may even get two or more offers on your home! And I think it is important to mention, even though the market is shifting, this is still a seller’s market. So the reality is, you can’t really underprice a home. But increasingly, you can overprice your home and that is a mistake that will leave your home sitting on the market and getting stale as other homes sell. And you don’t want that!

Pro Tip: What's the Right Price for Your Home

Now for my Pro Tip on how best to determine the right price for your home. In this changing market it is imperative that you look at the most recent data available. I said this in my previous video and I’m saying it again because it is so important. In a shifting market, using the most current data available is going to give you the best idea of where the market is, and where it is heading.

Is Now the Right Time to Sell Your Home?

If you’re not sure this is the right time to sell your home, check out my previous blog for three questions you need to answer before putting your home on the market.

J Trout Lowen is a Minneapolis-based Realtor® and an expert at helping buyers and sellers successfully navigate the Twin Cities housing market. 

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