Pricing Your Home Right When Buyers Have More Choices

A market where buyers can compare

In September, a record 41 of the 50 largest U.S. metro areas were buyer's markets. Nationwide, there were about 1.6 home sellers for every buyer.

Tampa saw one of the biggest shifts. There were about two sellers for every buyer (26,749 sellers to 13,134 buyers), and that gap grew more in one month than in almost any other big metro area. In the Orlando area the gap was even wider, with 20,083 sellers and 9,005 buyers.

Closer to home, buyers in the Orlando and Lakeland–Winter Haven areas also have room to shop. At the end of September, the Orlando area had 4.5 months of supply and the Lakeland–Winter Haven area had 5.2 months.

Why the first price matters most

In the Tampa-St. Petersburg-Clearwater area, 27.5% of listings had a price cut in September. Asking price per square foot fell 6% from a year earlier.

Yet prices on homes that actually sold held fairly steady. In September, homes in the Tampa Bay area, not counting condos, sold for a median $377,990, compared with $375,000 a year earlier. In the Orlando area, the median was $415,000, close to $420,000 a year earlier.

What does that mean for you? Buyers are still paying fair prices for homes that feel like good value. They are passing on homes that seem too high. The first weeks on the market are when the most buyers see your home. If the price is off, many of them move on and may not come back.

How to set a smart first price

• Look at sold homes, not asking prices. Asking prices show hopes. Sold prices show what buyers paid.
• Use recent, nearby sales. Homes that sold in the last few months, close by and similar in size and age, tell you the most.
• Count your competition. See how many similar homes are for sale right now. Those are the homes buyers will compare to yours.
• Be honest about condition. An older roof, AC or kitchen affects value. Price the home as it is, or make the fix first.
• Think about search ranges. Buyers often search in round-number price ranges. A price just under a common cutoff can show up in more searches.

Watch your first few weeks

Your agent can track how many people view the listing online, how many showings you get and what buyers say afterward. Here is how to read the signs:

• Lots of views, few showings: the photos or the price may not match what buyers expect.
• Showings, but no offers: buyers like the home on paper, but something in person, or the price, holds them back.
• Steady showings and offers: the price is working.

If a change is needed, one clear adjustment often works better than a string of small cuts. Many small drops can make buyers wonder what is wrong.

Value beyond the price tag

Price is not your only tool. When buyers have choices, a few extras can help your home stand out.

• Help toward a buyer's closing costs.
• A home warranty for the first year.
• Recent inspection or service records, so buyers feel confident.
• Flexible move-out timing.

Mortgage rates eased in mid-October, which may help some buyers who were waiting on the sidelines. In September, state regulators also approved rate cuts for four home insurers, averaging 7% for about 62,000 policies at renewal. Anything that eases a buyer's monthly costs can make your home the one they choose.

No tricks, just a clear plan

A good price is not a guess. It comes from real sales, an honest look at condition and a clear read on the homes around you. If you are thinking of selling this winter or next year, ask your agent for a pricing review now. You will know where you stand before the market gets busy again.