Do you want to chase the market or do you want to beat the market? If you want to win at selling your home today, you have to stay ahead of where the market is going.
This means that if housing prices are falling, the best way to price a home to sell quickly and for top dollar is to price it under market value. In doing so, you let the market come to you rather than chase the market down with price reductions.
The reason this is critical is because you should strive to protect your leverage as a seller.
If you price a home at market value, the home will be overpriced in a matter of weeks in todays market. That’s when price reductions begin to happen, days on market start to accumulate, and you find yourself chasing the market down. If you’re fortunate enough to find a buyer for your home after a few price reductions and 40+ days on the market, you’ll likely be under leveraged in the negotiation stages of your home sale
If you’re a seller, you’re only as good as your backup offer. The buyers are still out there and it would be wise to hit the market with a great first impression to get offers in. A good impression is important, not just in terms of how well put together the home is visually, but also in terms of price as the market corrects and buyers become more price sensitive.