If Your House Hasn’t Sold Yet, It May Be Overpriced
Has your property been on the market for a while without being sold? If this is the case, you should know that is not typical. While 2023 was anything but average in terms of the housing market, and even though the housing supply is higher than typical, most homes don’t sit on the market for very long.
There are a few reasons why your house may not be selling, but if it is in great shape, then the most likely scenario is that it is overpriced. With today’s higher mortgage rates putting a strain on the average home owner, buyers have becoming a bit more sensitive about the price. A recent article from the Wall Street Journal highlights this by saying:
“If you are serious about selling your home now, don’t get greedy with the asking price. This is still a seller’s home market as there simply aren’t enough affordable homes for sale in many parts of the country. But with average 30-year mortgage rates above 6%, buyers are much more price-sensitive than they were a year ago.”
Why Choosing the Right Price Is So Important
It is understandable that you would want to maximize the return on your investment when you sell your house, but you also need to set the price based on the current market conditions. The simple truth is that your house is only going to sell for what people are willing to pay. While those in the luxury market often consider price to be a secondary to the property's amenities and location, you still do not want to overprice your home.
This means that you may not be able to sell your house at the price you want. Keep in mind that emotions can run high during the selling process which can influence your decisions. You may have lived in your house for years, even decades, so it’s only natural that you are emotionally attached to it, which can make it harder to be objective.
It is important to acknowledge that a higher price tag will deter buyers and make them dismiss your house before even seeing it, especially if other homes in your area have lower prices. If no one is even checking out your home, then the realistic possibility of your home selling is low.
Consider Raising the Perceived Value
If you are not willing to change the price of your house, then there are things you can do to change the perceived value to make it more appealing to buyers. The perceived value combines several different factors, including the actual value of the home, real estate market trends, and the way your house is being marketed to reflect its best features.
This may require some money and time on your end, including renovations, updating amenities, or painting to make your home pop even more. Make sure you research current market trends to see what is selling and what features people are looking for.
If your home is still not selling after renovations and improvements, you may need to do something else to spark interest in it again. This is where a professional real estate agent comes into play. They will use the market data to determine what the correct price should be by taking into account the value of homes in your neighborhood, current market trends, the condition of your house, and more. While it may be tough to lower the price, remember that the sooner you sell your house, the sooner you can close this chapter and start your next one.
No matter how many homes are on the market, your home’s asking price still makes a big difference. If your home isn’t selling, then reach out to real estate expert Dianne Anderson today. With her expert advice and wealth of knowledge, Dianne Anderson can help you sell your home.