The most recent market stats from the Austin Board of Realtors® show a 6.6% decrease in median home price, with monthly inventory hitting nearly six months of inventory. While these stats indicate a more balanced real estate market for the Austin area, they also show some affordability challenges for buyers.
If you want your home to sell, you need to make sure it’s priced right to attract buyers. Set the price too high, and you risk scaring away potential buyers; set it too low, and you could leave money on the table. Here are some strategic tips to help you price your home and maximize its value in a competitive market.
Research Local Market Trends
Every real estate market is different, and understanding your local market is the first step in pricing your home correctly. Start by researching homes similar to yours (comparable homes, or “comps”) that have recently sold and pay close attention to:
- Sale price vs. listing price
- Days on market
- Local market trends—are prices increasing, decreasing, or stable?
A competitive market usually means demand is high and properties are selling quickly, but it also means buyers will be highly educated about what’s available. Currently, buyers have nearly six months of inventory available, but homes have also been sitting on the market longer than this time last year. Pricing too far above or below market value could turn buyers off.
Consider Features of Your Home
While comps are important, no two homes are exactly alike. Be sure to factor in the unique characteristics of your home, including:
- Renovations and upgrades: Has your home undergone significant improvements, such as a new kitchen or updated bathrooms? These can justify a higher asking price.
- Location: Homes in highly desirable neighborhoods or with features like a great school district, proximity to public transport, or waterfront views often command higher prices.
- Size and layout: Homes with an open floor plan, more bedrooms, or higher square footage may appeal to buyers, making them more willing to pay more.
Be Willing to Adjust
The first few weeks after listing your home on the market are critical. If your home is priced correctly, you should see significant interest and activity right away. If your home is not getting many showings or offers, it could be a sign that it’s priced too high. Making a small price reduction can often reignite buyer interest, and in a competitive market, timing is everything, so don’t hesitate to reevaluate your pricing strategy.
Hire a Professional Real Estate Agent
A local real estate agent brings invaluable insight and expertise into pricing your home. They have access to data that isn’t always available to the public and can conduct a comparative market analysis (CMA) that looks at recent sales, current listings, and expired listings to help you set a competitive but reasonable price.
Pricing your home right in a competitive market can make all the difference between your home selling quickly or sitting on the market. By understanding local trends, getting professional advice, and considering the unique features of your property, you can set a price that attracts buyers while maximizing your home’s value. If you have any questions about listing your home, reach out to us at Prism Realty! We would love to help you navigate the current market and answer any questions you have!
