Sell in a Sellers’ Market?
That’s a no-brainer, you say.
Not so fast, I say. For starters, pricing a home is more difficult in a sellers’ market. Faced with a low inventory, it is harder to arrive at a price simply by comparing the home to be listed to other homes. Comparable active listings may not exist, and recent sales may be sparse.
The penalty of overpricing
Why do homeowners overprice when they sell in a sellers’ market? Some do because they’ve read the headlines. Others do because a similar home just sold for a boatload of dough. The punishment for overpricing a home can be especially severe in a sellers’ market. With so few homes for sale and sold, buyers know all of them by heart and can spot an overpriced home a mile away. Buyers will wait for a price reduction that brings the home in line with the few others on the market.