The #1 Thing Sellers Need To Know About Their Asking Price
April 11, 2025
When you put your house on the market, you want to sell it quickly and for the best price possible; that's generally the goal. But too many sellers are shooting too high right now. They don’t realize the market has shifted as inventory has grown. The side effect? Price cuts are on the rise, but they really don’t have to be. Here’s why.
According to data from Realtor.com, in February, price cuts were the highest they’ve been in any other February since 2019 (see graph below):
If you consider that 2019 was the last true normal year for the housing market – that's a big deal. We’re getting back to what’s typical for the market.
This isn’t the same frenzied seller’s market we saw a few years ago. You may not get the same price your neighbor did at the height of the pandemic. And that means you may need to reset your expectations.
Because here’s the reality. If you shoot too high and have to lower your price after the fact, you could actually end up walking away with lower offers than if you’d priced it right from the start. So, how do you avoid that? You lean on your agent.
How an Agent Helps You Nail the Right Price
A great agent doesn’t just pull a number out of thin air. They’ll use real data and market trends to make sure your house is priced based on what your specific home is valued at today. So, you’re setting a realistic price – one that’ll draw in serious buyers.
And based on your agent’s analysis of your local market, they may even recommend strategically pricing slightly below market value to help your house attract more eyes and more competitive offers. Here’s how your agent will determine the right number for your house:
- They look at recent sales. What did similar homes in your area actually sell for? Not list for, sell for.
- They analyze local market trends. Your home’s value isn’t just about what you want for it, it’s about what buyers in your area are willing to pay.
- They craft the right strategy.
- They’ll make sure your home is priced to attract attention and create a sense of urgency among buyers.
Why Overpricing Backfires
Unfortunately, some sellers still ignore their agent’s advice and prefer to start high just to see what happens. The hope being maybe they get their full asking price, or they at least have more wiggle room for negotiation. But pricing high usually ends up costing you, and here’s why:
- Buyers may not even look at it. Today’s buyers are more budget-conscious than ever. If they see a home that seems overpriced, they’re likely to skip it completely rather than try to negotiate.
- It could sit on the market for too long. The longer your home sits unsold, the more buyers will assume something’s wrong with it. That can make it even harder to sell down the line.
- You might end up getting less
- . Homes that require a price cut often sell for less than they would have if they had been priced right from the start.
You can see that shake out in the graph below. It uses data from the National Association of Realtors (NAR) to show that the longer a house sits, the less it’ll sell for:
This graph shows that if a house sells within the first 4 weeks it is listed, it usually goes for full price. Based on experience, that's what usually happens to homes that are priced at or just below current market value. If it’s priced right, buyers will be interested, and, ultimately, willing to pay the asking price – or compete with other buyers and even go over asking.
But if a house isn’t priced right, it doesn’t sell as quickly. And this graph shows that, after the first 4 weeks on the market, the price starts to drop from there. That’s because buyer interest falls off the longer it sits. So, it becomes more likely a seller will either accept a lower offer because that’s all they have, or opt to do a price drop to draw people back in.
Bottom Line
The last thing you want is to list too high, watch your house sit, and then have to drop the price just to get attention. Let’s connect so that doesn’t happen to you.
Want to make sure your home sells quickly and for the best price? Let’s go over the right pricing strategy for your house.
Now that buyers have more options for their move, you need to be a bit more intentional about making sure your house looks its best when you sell. And proper staging can be a great way to do just that. What Is Home Staging? It’s not about making your house look super trendy or like it belongs in a magazine. It’s about helping it feel welcoming and move-in ready, so it's easy for buyers to picture themselves living there. It’s important to understand there’s a range when it comes to staging. It can include everything from simple tweaks to more extensive setups, depending on your needs and budget. But a little bit of time, effort, and money invested in this process can really make a difference when you sell – especially in today’s market. A study from the National Association of Realtors (NAR) shows staged homes sell faster and for more money than homes that aren't staged at all (see below):
If you’re a first-time homebuyer, you might feel like the odds are stacked against you in today’s market. But there are resources and programs out there that can help – if you know where to look. And one thing that can make homeownership easier to achieve? An FHA home loan. They’re designed to help you overcome some of the biggest financial hurdles in the homebuying process – and that’s why so many first-timers are using them to make their purchase. Whether you’re dreaming of ditching rent , planting roots, or just wanting a place that’s truly yours, an FHA home loan could be the path that gets you there sooner than you think. Buying Your First Home Probably Doesn’t Feel Easy Right Now While the motivation to buy a home is still there for many people, affordability is a real challenge today. According to a survey from 1000WATT, potential first-time buyers say their top two concerns are saving enough for their down payment and making the monthly mortgage payments work at today’s home prices and mortgage rates (see graph below):
You’ve probably asked yourself lately: Is it even worth trying to buy a home right now? With high home prices and stubborn mortgage rates, renting can seem like the safer choice right now. Or maybe your only choice. That’s a very real feeling. And perhaps buying today does not feel that it is your best move; it’s not for everyone. You should only buy a home when you’re ready and able to do it, and if the timing is right for you. But here’s the thing you need to know about renting. While it may feel like a safer bet today – and in some areas might even be less expensive month-to-month than owning – it can really cost you more over time. In fact, renting is 100% interest. You are paying somebody else's mortgage, and get no ownership benefits. A recent Bank of America survey found that 70% of aspiring homeowners worry about what long-term renting means for their future. And they’re not wrong. Owning a home may seem way out of reach, but if you make a plan now and steadily work toward it, homeownership comes with serious long-term financial benefits. Homeownership Builds Wealth Over Time Buying a home isn’t just about having a place to live – it’s a step toward building your future wealth. Why? Home prices typically rise over time , which means the longer you wait, the more expensive it is to buy. And even in some markets where home prices are softening today, the overall long-term trend speaks for itself ( see graph below ):
Do you think a brand-new home means a bigger price tag? Think again. Right now, something unique is happening in the housing market. According to the Census and the National Association of Realtors (NAR), the median price of newly built homes is actually lower than the median price for existing homes (ones that have already been lived in):
If you’ve been house hunting lately, you’ve probably felt the sting of today’s mortgage rates. And it’s because of those rates and rising home prices that many homebuyers are starting to explore other types of loans to make the numbers work. And one option that’s gaining popularity? Adjustable-rate mortgages (ARMs). If you remember the crash in 2008, this may bring up some concerns. But don’t worry. Today’s ARMs aren’t the same. Here’s why. Back then, some buyers were given loans they couldn’t afford after the rates adjusted. But now, lenders are more cautious, and they evaluate whether you could still afford the loan if your rate increases. So, don’t assume the return of ARMs means another crash. Right now, it just shows some buyers are looking for creative solutions when affordability is tough. You can see the recent trend in this data from the Mortgage Bankers Association (MBA). More people are opting for ARMs right now ( see graph below ):
If you're a first-time homebuyer, chances are you'll come across some terms you’re not familiar with. And that can be overwhelming, especially while going through one of the biggest purchases of your life. The good news is you don’t need to be an expert on real estate jargon. That’s your agent’s job. But getting to know these basic terms will help you feel a lot more confident throughout the process. Terms Every Homebuyer Should Know Once you’re familiar with this terminology, you’ll have a better understanding of important details – from contracts to negotiations. So, when those big conversations happen, you’ll feel informed, in control, and able to make the best decision for your unique situation. As Redfin puts it: “Having a basic understanding of important real estate concepts before you start the homebuying process will give you peace of mind now and could save you a fortune in the future.” Here’s a breakdown of a few key real estate terms and definitions you should know, according to the Federal Trade Commission (FTC) and First American . Appraisal: A report providing the estimated value of the home. Lenders rely on appraisals to determine a home’s value, so they’re not lending more than it’s worth. Contingencies: Contract conditions that must be met, typically within a certain timeframe or by a specified date. For example, a home inspection is a common contingency. While you can waive these to try and make your offer more competitive, it’s generally not recommended. Closing Costs: A collection of fees and payments made to the various parties involved in your home purchase. Ask your lender for a list of closing cost items, including attorney’s fees, taxes, title insurance, and more. Down Payment: This varies by buyer, but is typically 3.5-20% of the purchase price of the home. There are even some 0% down programs available. Ask your lender for more information. Chances are, unless specified by your loan type of lender, you don’t need to put 20% down. Escalation Clause: This is typically used in highly competitive markets. It’s an optional add on in a real estate contract that says a potential buyer is willing to raise their offer on a home if the seller receives a higher competing offer. The clause also includes how much a buyer is willing to pay over the highest offer. Mortgage Rate: The interest rate you pay when you borrow money to buy a home. Consult a lender so you know how it can impact your monthly mortgage payment. Pre-Approval Letter: A letter from a lender that shows what they’re willing to lend you for your home loan. This, plus an understanding of your savings, can help you decide on your target price range. Getting this from a lender should be one of your first steps in the homebuying process, before you even start browsing homes online. Bottom Line You don't need to have all these terms memorized, but a little knowledge goes a long way. Brushing up on the basics now means fewer surprises later – and more clarity when you buy a home. What unfamiliar real estate term or phrase have you come across that wasn’t on this list? Let’s connect and talk through it so you have a solid understanding of what it means and where it may show up in the homebuying process.
If you have a 3% mortgage rate, you’re probably pretty hesitant to let that go. And even if you’ve toyed with the idea of moving, this nagging thought may be holding you back: “ why would I give that up? ” But when you ask that question, you may be putting your needs on the back burner without realizing it. Most people don’t move because of their mortgage rate. They move because they want or need to. So, let’s flip the script and ask this instead: What are the chances you’ll still be in your current house 5 years from now? Think about your life for a moment. Picture what the next few years will hold. Are you planning on growing your family? Do you have adult children about to move out? Is retirement on the horizon? Are you already bursting at the seams? If nothing’s going to change, and you love where you are, staying put might make perfect sense. But if there’s even a slight chance a move is coming, even if it’s not immediate, it’s worth thinking about your timeline. Because even a year or two can make a big difference in what your next home might cost you. What the Experts Say About Home Prices over the Next 5 Years Each quarter, Fannie Mae asks more than 100 housing market experts to weigh in on where they project home prices are headed. And the consensus is clear. Home prices are expected to rise through at least 2029 (see graph below) :
If you’re a homeowner, chances are you’ve built up a lot of wealth in the equity of your home – just by living in your house and watching its value grow over time. And that equity is something that could help change your child’s life.Many first time buyers have a stable job and a solid plan, but affordability is still a challenge and buying can still feel out of reach. But that’s where your equity could make all the difference for your family. To give you an idea, the average homeowner with a mortgage has $311,000 worth of equity, according to Cotality (formerly CoreLogic ). That’s significant. And some parents are using a portion of their equity to help their children become homeowners, too. According to Bank of America , 49% of buyers between 18 and 26 got money from their parents to use toward their down payment ( see chart below ):
From rising home prices to mortgage rate swings, the housing market has left a lot of people wondering what’s next – and whether now is really the right time to move. There is one place you can turn to for answers you want the most. And that’s the experts. Leading housing experts are starting to release their projections for the rest of the year. These insights will give you clarity – and a little more optimism than you might expect. Business Insider sums up the forecasts (and why they’re good news for you): “As mortgage rates go down this year, affordability may improve slightly for homebuyers. Inventory is also expected to grow, which should help moderate price growth and make finding a home easier.” Let’s break it down. 1. Mortgage Rates Should Come Down (Slightly) While a major drop isn’t on the table, forecasters are calling for a modest decline in rates in the months ahead as the economic outlook becomes more certain. Based on the information we have right now, here’s a look at where they say rates should be by year-end (see graph below) :
Whether you’re planning to move soon or not, it’s smart to be strategic about which home projects you take on. Your time, energy, and money matter – and not all upgrades offer the payoff you might expect. As U.S. News Real Estate explains: ". . . not every home renovation project will increase the resale value of a home. Before you invest in a swimming pool or new addition, you should consider whether the project will pay itself off by getting prospective buyers in the door when it’s time to sell. " That’s why, before you pick up a power tool or call a contractor, your first step should be talking to a local agent. Planning Ahead Pays Off If you plan to move relatively soon, you’ll want to get a jump start on your to-do list. And even if moving isn’t on your radar yet, life can change quickly – and a new job, a growing family, or shifting priorities can fast-track your plans. You don’t want to be scrambling to fix up your home if your timeline changes. Smart updates now = fewer headaches later. By planning ahead, you can spread out the work over time, which is easier on your wallet and your stress levels. Plus, you’ll get to enjoy the upgrades while you’re still living there and have the peace of mind your house is ready to impress when it's time to list. What Buyers Want (and What’s Actually Worth Doing) If you’re not sure which projects are worth your time and money – here's some information that can help. A study from the National Association of Realtors (NAR) shows which upgrades typically offer the best return on your investment (ROI) ( see graph below ):
