Are you waiting for the perfect buyer to fall in love with your house? In the current market, that is usually not what things keep up. And here is why.
Let’s really be. Houses take a week longer to sell than a year ago. According to Broker.com:
“Houses also take longer to sell. The typical house brought 60 days to the market in August, seven days longer than last year and now above pre-Pandemic standards for the second consecutive month. This was the 17th consecutive month of annual increases on the market.”
Part of it is because there are more houses on the market. So with more options for buyers to choose from, they are not picked up that quickly. But there is another big reason: price.
The average catalog price is not going up – and that is important
Nowadays, many homeowners are exceeding their catalog prize. A few years ago they remember the large rise in house prices and they do not realize how much has changed.
One of the most important but often overlooked, changes in the contemporary housing market is this: The average catalog prices have been kept steadily in recent years.
That is a major shift from a typical market, where prices rose steadily every year. And it is considerably different from the increase of 2021-2022 when sellers could determine their price almost anywhere and can still attract several offers about asking.
But now? That trend is coordinated – and sellers who want to remain competitive must take note (See the graph below):
This is what this says about the current market. Buyers are now much more price sensitive. And sellers cannot keep trying to walk the bar higher, or their house will be without offers.
Homeowners who expect to bring more than their neighbors did last year can set themselves up for a longer, more frustrating experience.
And although homeowners are starting to realize that prices cannot keep climbing at such a fast pace, the hiccups that the catalog prices actually do not actually fall. They hang around and hold. And sellers who make this mistake often hold on to the hope that they can still have a few dollars from their sale. But that’s the problem there.
If you want to sell today, you must be in accordance with where the market is today. Not last year. Not during the pandemic. Today.
Because buyers skip houses that feel too expensive, even if it is just a bit. It is not that they are not interested. It is normal that in a market with more houses to choose from, buyers can be more selective and sellers do not get the same advantage of the doubt. If your house is not priced to sell, buyers will continue. They have other options anyway.
4 Drawing that your price may be too high
Maybe you already feel this yourself. If your house is mentioned and you will not see any results, pay attention to these common red flags by Bankrate:
- You don’t get many impressions
- You have not received any offers (or you only received Lowball offers)
- Buyers who see your house leave Leave overly negative feedback
- Your house has been on the market longer than the average for your region
If one of these sounds known, knows that waiting for the out will not solve this. But adjusting your price will.
So what is the solution?
Work together with your agent to ensure that your house is placed for the current market. Depending on your what is happening in your area, a few weeks without traction can ask questions for buyers about whether your price is realistic. And don’t worry – it doesn’t have to be a big drop. Even a small adjustment can be enough to bring the right buyers through the door.
And if you are worried, you will not get the price with high ticket sales that you thought you could land, keep in mind that your equity has probably grown quite a bit. Chances are that you are still at stake, simply because you have invested in a house for the past 5, 10 or more years. You still win when you sell today.
Bottom Line
Patience is not a strategy. Prices are.
If your house is not moving, the market tells you something – and the right price can change everything. Your house will sell if you praise it strategically.
Talk to your agent about what buyers are willing to pay to ensure that your house stands out for the right reasons.
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