In today's housing market, many sellers are making a critical mistake: overpricing their houses. This common error can lead to a home sitting on the market for a long time without any offers. And when that happens, the homeowner may have to drop their asking price to try to re-ignite buyer interest.Data from Realtor.com shows the number of homeowners realizing this mistake and doing a price reduction is climbing (see graph below):If you’re thinking about making a move yourself, here’s what you need to know. The best way to avoid making a costly mistake is to work with a trusted real estate agent to find the right price. Here’s a look at what’s at stake if you don’t.Not Paying Attention To Current Market ConditionsUnderstanding current market conditions is key to accurate pricing. You don’t want to set your asking price based on what happened during the pandemic. The market has moderated a lot since then, so it’s far better to align your price with today’s reality.Real estate agents stay updated on market trends and how they impact the pricing strategy for your house.Pricing It Based on What You Want To Make (Not What It’s Worth)Another misstep is pricing it based on what you want to make on the sale, and not necessarily current market value. You may see other homes in your neighborhood selling for top dollar and assume yours can do the same. But you may not be considering differences in size, condition, and features. For example, maybe that other house is waterfront or has a finished basement. To sum it up, Bankrate explains:“How do you find that sweet spot of pricing for profit but not overpricing? The expertise of your agent can be truly valuable here. A knowledgeable agent will understand fair market value in your area, how much your house is worth and how much you might reasonably expect to get for it in the current market.”An agent will do a comparative market analysis (CMA) to make sure your house is compared with truly similar properties to get an accurate look at how it should be priced.Pricing High to Leave Room for NegotiationAnother common, yet misguided strategy is to price your house high on purpose, so you have more room to negotiate down during the sale. But this can backfire. A price that seems too high often deters potential buyers from even considering the home. So rather than leaving room for negotiation, what you’ll actually be doing is turning buyers away. U.S. News Real Estate explains:“You want to sell your house for top dollar, but be realistic about the value of the property and how buyers will see it. If you've overpriced your home, chances are you'll eventually need to lower the number, but the peak period of activity that a new listing experiences is already gone.”An agent can help you set a fair price that attracts buyers and encourages more competitive offers.Bottom LineOverpricing your home can have serious consequences. A knowledgeable real estate agent brings an objective perspective, in-depth market knowledge, and a strategic approach to pricing.Connect with a local real estate professional to avoid making a pricing mistake that’ll cost you.

When is your time? Deciding when it is the right time to move can be a daunting task. Whether you are a buyer or a seller, there are several factors to consider before making the big decision. In this blog, we will discuss how to determine the right time for you and whether it is best to buy or sell when rates are falling. For buyers, the decision to move often stems from various reasons such as outgrowing their current home, relocating for work, or simply wanting a change of scenery. Determining when it is the right time depends on personal circumstances and preferences. Some buyers might be driven by the availability of properties that fit their needs, while others might be motivated by favorable market conditions, such as low-interest rates or reduced housing prices. On the other hand, sellers may consider moving if they have a desire to upgrade or downsize, or if they are looking to capitalize on the current market conditions. Sellers often gauge the right time based on factors like the state of the local real estate market, the demand for properties like theirs, and their financial goals. It is essential to consider these elements before deciding to list your property. One critical aspect that influences the decision-making process for both buyers and sellers is the market update. Staying informed about the current state of the real estate market is crucial for making an educated decision. By keeping an eye on trends, you can determine whether the market favors buyers or sellers. For instance, if the market is experiencing low inventory levels and high demand, it may be a seller's market, leading to higher prices and potentially quicker sales. Conversely, in a buyer's market with ample inventory and less demand, buyers can have more negotiating power and potentially find better deals. Now, let's address the question: should you buy or sell when rates are falling? Falling interest rates typically make borrowing more affordable, which can be advantageous for buyers. Lower rates translate into lower monthly mortgage payments and potentially allow for a larger loan amount. For sellers, however, falling rates might not necessarily have a significant impact on their decision to sell. Other factors such as market conditions, personal circumstances, and financial goals play a more prominent role. In conclusion, deciding when it is the right time to move depends on individual circumstances and preferences. Buyers should consider factors like availability and market conditions, while sellers should assess the state of the local real estate market and their financial goals. Lastly, falling interest rates can be beneficial for buyers, but sellers should focus more on other elements when making their decision. Ultimately, consulting with a knowledgeable real estate agent can provide invaluable guidance in navigating these complex decisions.