Thinking about selling your house? Here’s a crucial tip: just because it’s still a seller’s market doesn’t mean you can slap any old price on your listing.

Even though home prices are still going up, they’re not climbing as fast as they used to. Higher mortgage rates are cooling off buyer enthusiasm, and more homes are hitting the market. So, buyers have more choices, and if your price isn’t spot-on, your house might not stand out.

This is why getting your asking price right is more critical than it has been in recent years.

Some sellers are learning this the hard way, leading to more price cuts. Mike Simonsen, Founder and President of ALTOS Research, says:

“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.”

Why is this happening? Often, sellers haven’t updated their pricing strategy to reflect today’s market. Maybe they’re not working with a savvy agent, or they’re relying on outdated info. Either way, they’re missing out on setting a competitive price.

To avoid pricing blunders that could scare off buyers or drag out your sale, team up with an agent who knows the local market inside and out. A good agent will help you dodge common mistakes like:

• Setting a Price That’s Too High: Some sellers get their pricing wrong because they go with their gut or wishful thinking. An agent will use real data to help you set a price that’s more likely to attract buyers.
• Ignoring What Homes Are Actually Selling For: Without an agent, you might use outdated or irrelevant comparables to set your price. A pro will find the right comps and give you insights into pricing your home competitively.
• Overestimating Home Improvements: You might think your renovations will add a lot of value, but that’s not always the case. An agent will consider the improvements and what buyers in your area are looking for to set a realistic price.
• Ignoring Feedback and Market Response: If buyers aren’t biting, some sellers resist adjusting their price. An agent will help you understand the feedback and adjust your strategy to attract serious buyers.

Bottom line

Setting the right price is more important now than it’s been in a while. To avoid costly mistakes, let’s team up and get it right.