Why Your Asking Price Matters Even More Right Now in Los Angeles and Beverly Hills, CA
Why Your Asking Price Matters Even More Right Now in Los Angeles and Beverly Hills, CA | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
If you’re thinking about selling your house in Los Angeles or Beverly Hills, here's something crucial you need to know. Even though it’s still a seller’s market, you can’t just pick any price for your listing.
While home prices continue to appreciate in most areas, they’re climbing at a slower pace due to higher mortgage rates squeezing buyer demand. Meanwhile, the supply of homes for sale is increasing, giving buyers more options. This means your house may not stand out as much if it’s not priced correctly.
These factors combined make the asking price you set for your house more important today than it has been in recent years.
The Impact of Pricing Mistakes
Some sellers are discovering the importance of pricing the hard way, leading to more price reductions. Mike Simonsen, Founder and President of ALTOS Research, explains:
“Looking at the price reductions data set . . . It all fits in the same pattern of increasing supply and homebuyer demand that is just exhausted by high mortgage rates. . . As home sellers are faced with less demand than they expected, more of them have to reduce their prices.”
This issue often arises because sellers haven’t adjusted their expectations to today’s market. They might not be working with an agent who understands the local market dynamics or they may not be using the latest data to set their prices. Either way, they risk turning away potential buyers and delaying their sale.
Why Local Expertise Matters
To avoid pricing mistakes, it’s essential to work with an agent who truly knows the Los Angeles and Beverly Hills markets. A knowledgeable agent will help you avoid common pitfalls such as:
Setting a Price That’s Too High: Some sellers have unrealistic expectations about their home’s value based on their gut feeling or bottom line, not on actual data. An agent will help you base your price on facts, not opinions, increasing your chances of a successful sale.
Misjudging Comparable Sales (Comps): Without an agent, some sellers may use incorrect comps and misjudge their home’s market value. An experienced agent knows how to find accurate comps and will use them to price your home competitively.
Overestimating Home Improvements: Sellers who have invested heavily in home improvements may overestimate their impact on the home’s value. An agent will consider these upgrades realistically and align them with what buyers in your area actually want.
Ignoring Market Feedback: Some sellers resist lowering their asking price based on feedback from open houses. An agent will remind you of the importance of being flexible and responding to market feedback to attract qualified buyers.
The Importance of Accurate Pricing
Accurate pricing depends on current market conditions, and only a knowledgeable agent has the data and expertise to determine the right price for your house. In competitive markets like Los Angeles and Beverly Hills, where luxury properties are abundant and buyers are discerning, setting the right price is even more crucial.
Bottom Line
The right asking price is more important today than it’s been in recent years, especially in high-demand markets like Los Angeles and Beverly Hills. To avoid costly mistakes and ensure a successful sale, work with an experienced real estate agent who can guide you through the process and help you set a competitive and realistic price for your home.
Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value