One of the hardest conversations I have with homeowners is about a number they may have been carrying around for years:
“But my home was worth more than that before.”
Maybe an agent gave them a value three years ago. Maybe a neighbor sold during a stronger market. Maybe they had an appraisal when interest rates were lower and buyers were competing for homes.
That number may have been completely reasonable at the time.
But real estate markets change.
And sometimes holding too tightly to yesterday’s value can get in the way of what you’re trying to accomplish today.
The Market Doesn’t Stand Still
A home’s market value isn’t frozen in time.
Interest rates change. Buyer affordability changes. Inventory grows or shrinks. New competition comes on the market. Homes sell, prices adjust and buyer behavior shifts.
Here in the Prescott area, we’ve experienced several very different markets in just the past few years.
That’s why I spend so much time looking at current sales, active competition, days on market and, once we list, how buyers are actually responding to the property.
The market gives us information. We have to be willing to use it.
When Price Affects More Than the Sale
I recently watched this lesson play out in a difficult way.
A buyer was purchasing a home contingent upon selling their departure home. That home needed to sell by a specific deadline for their purchase to move forward.
The seller had been given a higher opinion of value based in part on sales from prior years and was reluctant to adjust the price when the home didn’t sell.
The deadline arrived without an offer.
The contingency couldn’t be satisfied, and the buyer lost the home they were trying to purchase.
At that point, the cost of holding onto a price wasn’t simply additional days on market.
It cost them their next home.
That’s why I think pricing conversations need to begin with something bigger than, “How much can I get?”
What Does Your Home Need to Accomplish?
If you’re selling, ask yourself:
What do I need this home to accomplish for me today?
Maybe your priority is getting every possible dollar and you have plenty of time to wait.
Maybe you’re relocating and need to be somewhere else by a certain date.
Maybe you’re downsizing.
Maybe you’ve found another home and your purchase depends upon this one selling.
Or maybe carrying the property for another six months would cost more than adjusting the price now.
Those homeowners don’t necessarily need the same selling strategy.
Price Is Part of the Strategy
Pricing a home isn’t something we should do once and then refuse to revisit.
We research the market, establish a starting strategy, launch the home and then pay attention.
Are buyers scheduling showings?
What feedback are we receiving?
How does the home compare with new listings?
Are competing properties going under contract while ours sits?
Are we getting offers?
Sometimes the market confirms that we’re positioned correctly.
Sometimes it tells us we need to make a change.
A price adjustment isn’t automatically a failure. Sometimes it’s simply a response to new information.
My Responsibility to My Sellers
I don’t believe my job is to tell a homeowner whatever they want to hear in order to get a listing.
My job is to understand what you’re trying to accomplish, study the current market, tell you what I’m seeing and help you make informed decisions.
Sometimes that means having a conversation neither of us particularly enjoys.
But I’d rather have an uncomfortable conversation early than watch a seller miss an opportunity later because we weren’t willing to respond to what the market was telling us.
Your home is important.
But usually, selling the home isn’t the ultimate goal.
It’s what the sale allows you to do next.
If you’re considering selling in Prescott, Prescott Valley, Chino Valley or the surrounding area, let’s look at today’s market and build a strategy around where you want to go next.
Thanks,
Kristi
