The summer selling season is here. Unfortunately, those home sellers who were looking forward to sky-high prices and multiple offers may be disappointed to find the market softening. In a declining market, pricing a home becomes critical to success.
Pricing your home in a softening market
The first step is to realize the market has changed. Buyers will not overpay for a home in an uncertain market. Whereas just a few months ago it might have made sense to “test the market” and set an aggressive price, sellers who try that strategy today will lose valuable time, risking an even slower market when the home sells.
Home Value Truths
· What you paid for your home doesn’t affect its value.
· Your asking price does not affect its value.
· What it might have sold for 2 months ago does not affect its value.
· What your agent tells you about price does not affect its value.
The value of your home is determined by what a qualified buyer in today’s market is willing to pay for it, comparing it to others on the market for sale.
Pricing Strategy in a Softening Knoxville Market
Your pricing strategy should be the same, regardless of whether you are in an accelerating or declining market – to price the home ahead of the market. In a declining market, that means you should price your home slightly below the most recent comp. Using this strategy, you will demonstrate to buyers that you understand the value of your home and are serious about getting it sold quickly. This puts you in the best position to maximize your selling price in the current market climate.
If you are considering selling your home please contact me for a complimentary home valuation report. To provide an estimate I will take into account market data, recent comps, and provide a recommended listing price range using my proven pricing model.
Current Knoxville Home Market Statistics
This information is provided as of 7/31/22 by Hancen Sale of the Knoxville Area Association of Realtor which shows current market data.
- Knoxville area home sales increased in June — up 1.6% from the previous month but down 2.9% from a year ago.
- Median home sales price was $326,000 in June — up more than 18.5% from the previous year.
- Total housing inventory continued trending upward – up 33% from a year ago but active inventory was still only half of the pre-pandemic level.
- Half of the homes sold in June were under contract in 4 days or less.
- 46% of homes sold for over asking price, compared to 50% the previous month, with 31% selling for at least $10,000 over asking and 14% selling for at least $25,000 over asking.
- New construction represented 8.9% of total home sales, though move-in-ready new homes accounted for only a small portion of total sales.