Timing Matters When It Comes to Price Adjustments
In Chicago, more homebuyers are house hunting during the months of March, April and May than in any other three-month period throughout the year.
So, it stands to reason that sellers who price their homes correctly during this peak period have a great chance of generating strong interest…and a sale. By the same token, if sellers aren’t seeing strong showing activity during these peak home-buying months, it’s a pretty good indication their asking price may be too high.
@properties co-founder Thad Wong says, “It’s natural for sellers to be reluctant about lowering their asking price in the spring, especially if their home has only been on the market for a couple of months. But given the seasonal dynamics of the market, the time for sellers and their brokers to have that pricing conversation is in fact right now.”
“After Memorial Day, buying activity starts to tail off and it continues to drop throughout the year,” says Wong. “It’s important for sellers to get ahead of that curve.”
Sellers often delay price adjustments on the assumption they will get more money by holding out. But Wong says this strategy usually has the opposite effect.
“If you wait to address a pricing issue until June, July, or August, when you have fewer buyers in the market, there’s a very good chance you’re going to sell for less.”
In order to yield the highest sales price, Wong stresses the importance of pricing correctly from the beginning to generate significant interest and “fear of missing out.”
When it comes to pricing your home, @properties’ Interactive CMA (Comparative Market Analysis) is a great resource for agents and clients. The CMA continually evaluates comparable properties using real-time data from the local Multiple Listing Service.
Wong says it’s very important for sellers to pay close attention to the homes in the CMA that are under contract or closed (rather than homes that are active, i.e. unsold), because these homes are indicative of how buyers are actually valuing homes in the market.