If Your Home Hasn't Found a Buyer Yet, It Might Be Priced Too High

Has your property lingered on the market without finding a buyer for an extended period? If that's the case, it's worth noting that such a situation is rather uncommon, particularly in the current real estate climate. This is due to the persistently limited supply of homes for sale, which remains significantly below the levels seen in a typical year. Consequently, potential buyers have fewer choices than usual, emphasizing the importance of your house as a sought-after option in a scarcity of available inventory.

Therefore, if prospective homebuyers find themselves with restricted options and your property remains unsold, there is a specific explanation. Let's address a potential obstacle that might be deterring buyers: your listed asking price.

Particularly in light of the current elevated mortgage rates, which are already straining their financial limits, buyers are becoming more price-conscious. As highlighted in a recent Wall Street Journal (WSJ) article:

"If you're genuinely committed to selling your home at present, avoid being overly ambitious with the asking price. While it remains a seller's market due to a shortage of affordable homes in numerous regions, the landscape has shifted with average 30-year mortgage rates surpassing 6%. Buyers are now significantly more price-sensitive compared to a year ago."

How the Right Price Paves the Way

While aiming to optimize your investment returns during the sale of your house, it's crucial to maintain a realistic approach in line with current market conditions. The fundamental reality is that your house will only fetch a price aligned with what buyers are willing to pay in the present circumstances.

Coming to terms with this reality can be challenging, especially considering the heightened emotions that often accompany the selling process, further complicating matters. Having lived in the house for an extended period, it's only natural to form emotional attachments, and those sentimental connections can create obstacles to maintaining objectivity.

Coming to terms with this reality can be challenging, especially considering the heightened emotions that often accompany the selling process, further complicating matters. Having lived in the house for an extended period, it's only natural to form emotional attachments, and those sentimental connections can create obstacles to maintaining objectivity.

To facilitate the sale of your house, you must take steps to rekindle interest in your property. This is where the expertise of a local real estate agent becomes invaluable. They leverage data to assess if your home is priced appropriately for the local market. Considering factors such as the value of neighboring homes, prevailing market trends, buyer demand, and the condition of your property, they work to determine the optimal price. This strategic approach allows you to conclude this chapter and embark on your next one.

Bottom Line

Although there is a limited inventory of homes for sale at the moment, the asking price of your home remains a crucial factor. If your property is not selling, it could be an indication that the price is set too high.