Market & Moments: Is Your Home Priced for Today’s Market?

Welcome to Market & Moments, where real estate broker Susan Kadilak shares market updates and lessons learned from more than two decades in the business.

Real estate markets can change quickly, and we’re seeing signs of a shift as we head into fall. Mortgage rates have moved higher, which directly affects how much buyers can comfortably spend each month. When borrowing becomes more expensive, buyers often become more cautious and homes may take longer to attract offers. The important thing for sellers to understand is that closed sales are backward-looking. A comparable property that sold recently may have gone under agreement months ago, when buyers were shopping in a different interest rate and seasonal environment.

Once your home is on the market, it can be difficult to know how long to give it before considering a change in strategy. Every home and every market is different, and a quiet first week doesn’t necessarily mean you need to react. But as showing activity and buyer feedback begin to come in, certain patterns can help you understand how your home is being received. After the first couple of weeks, here are a few questions worth asking:

• Are we getting at least 1–2 private showings per week? Very little showing activity can mean buyers don’t see enough value at the current asking price to even come through the door.
• Are people looking, but nobody is making an offer? Showings without offers usually mean buyers are interested in the home, but something isn’t lining up. We expect to see an offer after about 8-10 private showings so if nothing's come in once we hit that number, we need to reassess our strategy.
• Are competing homes going under agreement? If similarly priced homes are selling while yours isn’t, buyers are out there. They’re simply choosing another property. It’s important to understand why that is happening.
• Are competing homes sitting, too? That’s different. If nothing in your price range is moving, you may be experiencing a broader demand problem rather than something specific to your house. A small price reduction may not be enough to change the outcome.
• Has the market changed since your comparable sales went under agreement? Mortgage rates, inventory and buyer competition can change quickly. A sale that closed recently may reflect conditions from several months ago, so don’t assume yesterday’s sale price automatically represents today’s value.

Most importantly, don’t chase the market down. If the evidence supports a price adjustment, making one meaningful move early can be more effective than making several small reductions after the listing has accumulated significant market time.

After selling real estate since 2002 and working through the Great Recession, this is one lesson I’ve learned repeatedly: When the market moves, you have to be willing to move with it.