For the past few years, specifically in 2021 and 2022, we have seen sellers push the price point on their property, and often they have sold at or near that higher price, driving prices up everywhere. But it’s pretty safe to say that our market is different than it was immediately post-COVID. In our area, most would say we are in a level market. So is it a good time to push the price point in this current market?
It really depends on the seller’s mindset and goals, and even their timeline. We are often seeing properties sit on the market for months or not selling at all when the price is pushed above listing value. Every once in a while, we see a higher priced property sell with that higher price. So what is the best way to approach the price when listing your property for sale?
Let’s take a look at a recent listing I had. The houses in the neighborhood were extremely similar in size and design, so we looked at the condition, which is a strong factor in how high a price should go compared to other houses in that specific neighborhood. Completely updated homes, new kitchens, baths and floors generally will bring in higher numbers than a property without those updates.
We could push the price point and list in the ballpark of the current listings (about $50k higher than most properties were closing for in that neighborhood), that were sitting… for months, most not selling at all. Or we could look at what homes were closing at, and list close to that price. When listing a property, the price a property closed at has more relevance than the price other properties are currently listed.
Some sellers have time to wait to see if someone will offer their higher priced ask. But sometimes and recently, more often, that can backfire. As a realtor, I can see some properties push too high on the price, and then end up selling lower than they might have originally sold, if they had just priced it more competitvely to start with.
My sellers wanted to move their property quickly, so they chose to list at that competitive price. And they went under contract, full ask, within 48 hours.
Some sellers are willing to take that risk, and someti. Ultimately, this is a conversation to have with your realtor to decide how to plan and the best strategy moving forward.