There have been 22 price reductions in El Dorado Hills in the past week as EDH For Sale Home Inventory climbs to the highest levels since July of 2020.
Sellers need to really think about pricing strategy as they come on the market in this changing environment.
A good rule of thumb is that (typically) seller pricing trails the market where buyer pricing sets the market price. For example, for the past two years, many sellers were pricing BELOW the market resulting in buyers paying ABOVE asking price. Now, as the market shifts, sellers are pricing ABOVE where buyers value their homes resulting in price reductions and more sales BELOW asking price.
This is often because sellers – and their agents – use recent sales as “comps” in order to price their home. While comps are the best starting point, better agents includes other factors in addition to past sales in order to help sellers determine the price where they will see the most buyer activity resulting in the quickest sale at the best price.
Pricing strategies that worked in an environment of multiple bids and over-asking sales are NOT going to work as well in the current market as the power equilibrium swings back towards buyers. This doesn’t mean you can’t or won’t get a great price for your home. Nor does it mean the market is crashing and sellers have missed their window.
What it means is that HOW you bring your home on the market has changed. Coming on the market as if nothing in the market is changing and expecting to set a record price for your neighborhood is not likely to yield you the same result is might have 6 or 12 months ago.
If you are considering selling and are curious how we would suggest pricing your house to get the best price the most quickly in this changing market, message us here and let’s talk!
