Pricing a home for sale is an art, not a science. And now, in the Boston area, that’s even more true than it has ever been. Despite tighter inventory, this market is unpredictable and quirky. 
As I talk to sellers, my conversation about pricing will vary depending on several factors, including location and market segment.
As I talk to sellers, our conversation about pricing is very different than it was a year ago. That is due in large part to significantly higher mortgage rates. When the rates were lower, we had the ability to push the pricing on a home and be aggressive because the supply of buyers in the market allowed us to do so. We can still take this approach in a lot of the suburbs of Boston, particularly in the lower of those markets; however, in the City, that is just not the case right now.
When pricing a home, I look at comparable properties that have sold recently and similar homes currently for sale. The sold data tells us what a buyer has been willing to pay for a home in the recent past. This can be a little tricky right now because what a buyer paid in the first half of 2022 before interest rates went up might be very different from what a buyer would pay in 2023. So, we need to be careful about going back too far to look at comparable sales. The most recent sales will be the best indicator of what a similar home may sell for.
In some respects, looking at similar competing properties provides better data points for pricing strategy. If a similar home has been on the market for 6 weeks and has already had a price reduction, it gives us a great deal of information about how the buyer pool is responding to the price.
Although inventory remains low, we are seeing a slowdown in the pace at which buyers are making decisions. This is particularly the case in the condo market in the City as well as in the higher-end market in the suburbs. This is causing some properties to take longer to sell, thereby increasing the number of available properties at certain price segments. Greater inventory creates greater competition among sellers and necessarily causes prices to become more competitive. With all of this said, as overall inventory continues to remain low, it is still a great time to consider selling.
Understanding and interpreting market data is no small task. It takes skill, experience, and understanding. Andrew McKinney is highly adept at advising clients on appropriate and realistic pricing strategies to help sellers achieve optimal sales. He continues to monitor the market to help clients achieve their sales goals. Reach out today if you would like to schedule a no-obligation discussion on the potential sale of your home!
For expert advice on accurately pricing your home, reach out to Andrew McKinney, a seasoned Boston resident with 15 years of experience in the city's diverse real estate market. Andrew possesses in-depth knowledge not only of Boston itself but also of its dynamic real estate landscape. Feel free to contact Andrew McKinney at (617) 501-0233 or via email at [email protected] for further assistance
Attorney Andrew McKinney, formally of Buyers Brokers Only, LLC is an exclusive real estate agent with 13 years of experience in the Boston area having completed over $250 million in transactions. Andrew works with buyers and sellers at all market segments in Boston and the surrounding cities and towns including Cambridge, Somerville, Brookline, Newton Needham, Arlington, Belmont, Watertown, Medford and Melrose. As an attorney and an MBA, Andrew brings a unique skill set and level of professionalism that sets him apart from other agents in the area.