Houston Home Sale Stalled? How Long To Wait Before Lowering Your House Price?
Pricing too high? Here Are Tips To Help You Win The Market
Coming off of the best year in Houston real estate, you've probably known people who quickly sold their homes for a great price. If you're planning to move any time soon, you must be worried that you've already missed out.
Anyone looking to sell now will wonder: Did I overprice? How long before lowering the cost of my Houston home?
Last month's single-family home sales fell 17% year-over-year. The market is 5% behind 2021's record-breaking volume. We expect the market to slow down with current mortgage rates (about 6.5% as of writing).
Holly Hernandez, a top-ranked Realtor with the Houston Properties Team, mentioned:
We're starting to see signs of a market correction. We expect fewer sales and less competition among buyers.
The market will only continue to be more challenging to navigate, given the recent trends. Here are some tips on how to strategize when it comes to pricing and marketing your home.
Related resources:
- Free Home Value Estimator
- 9 Home Selling Mistakes You Should Avoid
- Top 10 Home Staging Ideas To Raise Home Value
"The Houston Properties Team has the best list of inspectors and vendors. Need an inspector to show up tomorrow - done. Need someone to check out pool equipment - done. Need someone to fix anything - done. Their team has invested in these relationships over the past decade and it means you benefit (as their clients get priority). Paige and the Houston Properties Team actually care. Whether it's talking you out of 30 houses because none are good enough, getting to know you so they can ensure you're in the right neighborhood, or negotiating on your behalf to get the best deal (either upfront or after inspections). They say they have an unfair advantage because they care more - it's true. In a world where quality service and caring are rare, they shine." - Bob (Google Review)
Table of Contents
- How Long Before Lowering Your Houston Home Price?
- Are Price Drops More Common As The Houston Market Changes?
- How Many Times Should You Lower Your Houston Home Price?
- How To Find Out If Home Is Overpriced?
- What Else May Be Wrong With My Price?
- Still Believe Your Houston House Is Correctly Priced?
- Best Houston Realtors: The Houston Properties Team
How Long Before Lowering Your Houston Home Price?
"Paige Martin and the Houston Properties Team are all specialists in their roles. Once you’ve enlisted their help, you’re actually hiring a team that runs like clockwork – they have people dedicated to each phase of the buying or selling. I was amazed at how fast my transactions were completed with the best deals possible. Thank you for removing the hassle out of my real estate experience!" -Courtney Nuckols
The general timeline is 1-2 weeks. In 14 days, you will have a pretty good idea of how your property compares against the competition. Since Houston is a hyper-local market, the number will depend mainly on how homes in your area sell.
"You can tell in about a week," says Hernandez, one of the top listing agents on The Houston Properties Team. If your agent is familiar with the area, they can advise you on how the market will trend based on your level of interest and how quickly homes sell.
Single-family homes increased sales by more than 10%, exceeding the 2020 record. At the same time, overall dollar volume increased by over 32% to a record $47 billion. The median price grew 15% to $300,000, setting a new record. This year's average price has risen 16% to $376,075. In 2021, total dollar volume increased by 31.8% to a record-breaking $47 billion.
The odds of price reductions increase the longer a property sits on the market. If you think you've overpriced your home, it's wiser to pivot fast rather than sit on the market longer. The more time your home is on the market, the lower price you'll fetch.
Are Price Drops More Common As The Houston Market Changes?
"The entire Houston Properties team made the home buying a breeze. As first-time homebuyers, my wife and I were a bit nervous going into the process but the HP team made us feel comfortable with their knowledgeable guidance, proactive communication, and friendly demeanor. I definitely recommend them." - Jonathan Prim (Google Review)
As the housing market changes, so do prices. Total property sales in the Houston market declined 17%, with 9,387 units sold. Houston's townhome and condominium sales fell 17.6% for the fourth month.
Houston homes actively listed for 30 days or longer increased by 10.2% year over year in July. In general, 60% of Houston homes for sale remain on the market for over a month.
Hernandez reported 87 price decreases after a week on the market, compared to none about six months ago. Realtors that conduct market research can help clients set realistic pricing from the outset.
"A house can sell for so much," says Hernandez. "Appraisals can only go so high, and you're only likely to bring in so much cash over its worth anyhow."
How Many Times Should You Lower Your Houston Home Price?
"The Houston Properties Team EXPERTLY handled all of the steps involved in selling our house. Trying to sell a property is very intimidating, we were completely overwhelmed. Fortunately, the Houston Properties Team came in and took care of everything for us: from staging our house, getting it listed, all the way down to negotiating with buyers to get us the best offer. In just two weeks, we've had multiple showings and offers. They made things easy for us, and they worked so fast! We can't thank you enough." – Landrus | Google Review
If done right, you will only need to do it once. A timely and calculated price adjustment should result in a multiple-offer situation.
Holly Hernandez, a leading real estate agent with the Houston Properties Team, suggests:
When sellers agree to a price drop, there is an 8% to 10% price reduction. If we didn't have any traffic on showings in the first few days, we missed the goal by that much.
A 5% reduction is okay, according to Hernandez. But, lowering your price by 1% may not be profitable. It won't be enough to entice buyers seeking a new price range. But it will attract the attention of those watching the market for opportunities to deal with it.
“It’s challenging when you miss the mark on price at the start. Buyers are quite savvy, they get notified when your price declines,” Hernandez explains. That’s when buyers request sellers to add house warranties and closing expenses.
Lowering the price once is the best strategy for selling your house quickly. If the updated pricing is correct the second time around, you should be able to avoid further delays.
Refer To Comps For Advice
According to our experts, comps—or recently sold houses in the Houston area. Since Houston is a hyper-locale, you need data customized to your specific location. "If you're looking at something in the area and seeing sales and similar homes go into contract. While not getting any activity, you need to start thinking, what is the problem?" Hernandez adds.
But, when the market moves quickly, the term "recently" takes on a new meaning. Hernandez believes she can extract sales from the previous 3-6 months and find "a nice base foundation" for a reasonable sale price. Earlier this year, though, she only looked at the last thirty days. "The values were increasing so quickly that I became concerned."
She's recently been tempering sellers' expectations for high asking prices by presenting statistics on shifting interest rates. "It's complicated," says Hernandez. "You must be careful when explaining to a seller on the market in October. You can't compare the property across the street that closed in March with a 2.9% interest rate."
Here are ways to check the comparisons and see whether your pricing is reasonable:
Get A Free Home Value Estimator
Put yourself in the buyer's shoes to find out how much your house is worth. Selling a home at the correct price will result in several offers from buyers.
Overpricing a house is a standard error that sellers make. If a home's price is higher than the current market value, there is a chance that it may not sell fast.
An overpriced home is vulnerable to many price reductions. Selling well below market value is a bad idea. We want the effort invested in a property to raise its value.
Use Houston's Online Home Valuation tools to get a snapshot of your location. We can also provide a custom report of your property's value.
Consult With The Best Houston Realtors
Top real estate agents are great for calculating pricing or promoting your house. The Houston Properties Team handles all transaction elements due to their continual participation in local markets.
We do a comparative market study. We examine the prices of recently sold houses in your area with similar square footage, general condition, and several bedrooms and bathrooms.
We consider specific amenities such as a refurbished gourmet kitchen or a lake view. We also take into account a slew of other market factors. It includes the area's average price per square foot and the overall supply of unsold properties.
Learn about comparative market analysis and how it might help you change your asking price if necessary.
"Most people want to start [up] here, and I know what's going on with this ball sliding downward and us ending up here," Hernandez adds.
You Must Get An Appraisal
Houston Properties Team listings sell for 7.2% more and 4.3% faster. We have a 152-step listing marketing checklist. We keep track of the little things to avoid big mistakes.
This checklist involves seller consultations, listing pitches, and appraisal reviews.
"The greatest thing sellers can do is listen to their agents and the market," Hernandez says. If the price point of the sellers and their agents differs by 15%. You need to pay for an assessment that can moderate the dispute.
Overpriced homes are challenging to sell. You must price your home correctly to prevent a higher DOM. Home sellers usually make one mistake. Overpricing a house without a realistic idea of its worth.
"An assessment may be a handy tool, bringing a lot of extra knowledge," Hernandez explains. A third-party appraisal can evaluate the value and anticipate how much a buyer's lender would lend.
How To Find Out If Home Is Overpriced?
"Buying a house in Houston with The Houston Properties Team was just the start of our relationship. They helped me build friends, relationships, and support as a new resident in Houston. They truly went above and beyond to help make our lives better even after our move." – Brandon, Google Review
Examine your agent's marketing strategy: is your house correctly advertised online? Have you analyzed the state of your home? If you've considered these considerations, the issue is most likely pricing.
"A lot of sellers are optimistic about the value of their properties today," Hernandez adds. "When I go down with a seller and my comps and statistics don't match what they think they can get, we have to be extremely honest."
Here's how that house pricing discussion may go:
You've Passed The Average Houston "Days On Market"
"Days on the market" pertain to the time a home is listed until it is under contract with a buyer. Federal data shows that the Houston Woodlands market's inventory stayed on the market for 46 days in September 2022. This average was 39% higher five years ago, demonstrating Houston's recent buyer market.
Days on the market in one location may not be accurate in another. Ask your Realtor how quickly other Houston areas are selling compared to yours.
Unique rural homes, for example, are bringing excellent value. It spends fewer days on the market than higher-end listings of $650,000 to $1 million. It is due to interest rates having a drastic change that affected the market.
The Market Has Changed Recently
Early 2022 saw a reduced inventory market with rising property prices. But, analysts predicted a minor correction compared to the previous year. Despite a drop in total sales volume, the upper end of the Houston market thrived in September. The $500,000 to $1M housing category is the top-performing segment, up 12.6 percent yearly.
Bidding wars cooled as some buyers overpriced out of the asking price in the market. High mortgage interest rates also restricted the buyer pool. The national rate for a 30-year fixed refinance is 7.20%. It is 14 basis points higher compared to the previous month. Meanwhile, the average 15-year fixed refinancing rate is at 6.46%.
If the comps you used to price your house are three to six months old, you need to reconsider using more recent sales. It may be beneficial for your listing agent to contact the agents of comparable houses. To see what they sold before the information becomes public, as soon as they enter escrow.
"I phone the other agents in the area and inquire what the traffic is like," Hernandez explains.
You've Had Showings But No Deals
You've dropped everything more than you can count on to straighten up your house. But each trip is unsuccessful, leaving you wondering what went wrong. "If you don't have an offer within 48 to 72 hours—and you're having a lot of traffic and showings—you've probably overpriced," Hernandez adds.
Other possible causes include flaws, such as a strange scent or a broken kitchen counter. It may surprise buyers when they visit the house. As a next step, you may invite a friend to examine your home and offer input. You could also see nearby listings for a new perspective. It may help you determine whether your price is correct.
What Else May Be Wrong With My Price?
"The Houston Properties Team was great to work with. They were always patient and diligent and always represented our best interests throughout the home buying process. We couldn't have asked for a better or more competent representation. They were super helpful and were always responsive and very proactive. Their knowledge and expertise proved to be a very useful resource." - Abu Bakar Bah (Google Review)
Here are a few more price pitfalls to avoid, according to real estate experts:
You're Seeking For A Unicorn Buyer
Certain hot national news may tempt you to overprice. "But, you shouldn't expect miracles," adds Hernandez.
Buyers will sometimes pay any price and agree to any terms to get the desired property. "You don't want to price for unicorns; you want to price for the market," Hernandez explains. "It's fantastic if you get lucky with a unicorn buyer."
You're Between Pricing Ranges
For decades, buyers have validated the power of 99 as a retail pricing strategy. Staying under the threshold by one unit—paying $9.99 instead of $10. It gives buyers the impression that they are receiving a good bargain.
But in real estate, such a strategy rarely succeeds. Most real estate search engines use round number criteria ranging from $100,000 to $1.8 million. In 2021, 43% of buyers shopped for houses online. It's critical to price your home so they can find it rather than straddling a price range.
"If you price your property at $299,999, you're going to miss out in the $300,000 and higher bracket," Hernandez adds. Her experience also reveals that buyers look for properties in increments of $25,000 or less. For instance, they may like properties between $300,000 and $325,000.
Still Believe Your Houston House Is Correctly Priced?
"What an incredible experience! They sold our home in 7 days but more importantly, Brad and Laura were incredibly responsive, attentive, and detail-oriented. The Houston Properties Team does not cut corners on pictures, staging or even the little things like snacks, water and bringing in the mail. I can't say enough things about Brad's professionalism, aggressiveness and responsiveness." – Brandon | Google Review
Before reducing your offering price, double-check your marketing and house presentation. Your realtor will likely guarantee that the house shows well from the outset. But to boost your chances of a sale, make sure you've checked the following measures:
1. Buyers And Their Agents Can Access And View Your House
A home is a family's greatest investment. Most buyers prefer to see the property. They may even want to stroll around many times before making an offer.
Lack of access might be an issue if you have restricted hours for showings or open houses. It might also be an issue if you have already marketed the home. But it's not yet ready for public viewing.
2. Your House Appears To Be Move-in Ready
Suppose buyers see a property with an overgrown landscape or obsolete fixtures. "All they perceive is more money they have to pay," Hernandez adds.
To achieve the best price and appeal to the most buyers, you should:
- Use neutral colors for walls and ceilings
- Replace worn-out carpets
- Declutter and clean
- Improve your landscape
Hernandez said, "In providing buyers aesthetic credits, including money toward painting or flooring." You must let your agent include it in the listing notes.
3. Include Professional Photos Of Your Listings
Realtors work with experts in taking professional photos to ensure that each space on the internet seems inviting. We compiled some DIY design and staging tips to make your property look appealing to buyers.
4. Highlight Neighborhood Amenities And Nearby Locations
Your listing must be appealing, informing buyers of what makes it unique. Make sure your description includes your property's top qualities. It should feature schools, parks, restaurants, and other local favorites within the area.
5. Your Home's Unique Features
A little research on Houston real estate trends may offer many advantages. Look through home design blogs for the current features and showcase those assets in your home.
According to Hernandez, the appeal of bigger houses has increased since the pandemic began. It features patios, pools, and other outdoor living areas. A staged home office might also be beneficial.
6. You Must Focus On The Right Buyers
Homes with unconventional features, layouts, or settings are not for everyone.
A split-level property may take longer to sell. Compared to a ranch-style home in an older-buyer-friendly community. But, the appropriate buyers will be overjoyed to locate the ideal home.
If a unique property is correctly priced but is not selling, Hernandez urges sellers to be patient and listen to the market. "Your one-of-a-kind property may need more exposure time," she explains.
The Houston Properties Team offers suggestions to make your house more appealing to buyers.
If your price is right, your property looks excellent. Your marketing reaches the right people, showings should rise, and offers will follow.
Best Houston Realtors: The Houston Properties Team
“Paige Martin is the best realtor in Houston. She will tell you the ‘bad’ and ‘ugly’ of a property and help you make a good purchase.” – Mike Baker
Paige Martin, Broker Associate with Keller Williams Realty, and the Houston Properties Team are among the world's top residential Realtors.
They have been featured on TV and in dozens of publications, including The Wall Street Journal, Fortune Magazine, Reuters, Fox News in the Morning, Money Magazine, Houston Business Journal, Houstonia, and Houston Chronicle.
Paige Martin was ranked as the #5 agent in the world with Keller Williams, completing over $1 Billion in Houston residential real estate sales.
Recent awards include:
– 2022: #1 Residential Real Estate Team by Sales Volume, Houston Business Journal
– 2021: Best Real Estate Teams in America, RealTrends.com
– 2021: Top 100 Women Leaders in Real Estate of 2021
– 2021: America's Top 100 Real Estate Agents
– 2021: Top Real Estate Team (Houston Properties Team), Houston Business Journal
– 2021: Best Houston Real Estate Team, Best of Reader's Choice
– 2021: Top Real Estate Team (Houston Properties Team), Houston Business Journal
– 2021: #1 Real Estate Team, Keller Williams Memorial
– 2020: America's Best Real Estate Teams, Best of America Trends
– 2020: Best Houston Real Estate Team, Best of Reader's Choice
– 2020: Top Real Estate Team (Houston Properties Team), Houston Business Journal
– 2020: #6 Individual Agent, Keller Williams, Worldwide
– 2020: #1 Individual Agent, Keller Williams, Texas (Top Keller Williams Realtor)
– 2020: #1 Real Estate Team, Keller Williams Memorial
- 2019: Top Residential Realtors in Houston, Houston Business Journal
- 2019: America's Best Real Estate Agents, RealTrends.com
- 2019: #5 Individual Agent, KW Worldwide
- 2019: #1 Individual Agent, KW Texas
- 2018: #5 Individual Agent, Keller Williams, Worldwide
- 2018: #1 Individual Agent, Keller Williams, Texas
- 2018: #1 Individual Agent, Keller Williams, Houston
- 2018: America's Best Real Estate Agents, RealTrends.com
- 2018: Top 25 Residential Realtors in Houston, Houston Business Journal
- 2018: Texas' Most Influential Realtors
- 2017: #1 Individual Agent, Keller Williams, Texas
- 2017: #1 Individual Agent, Keller Williams, Houston
- 2017: #10 Individual Agent, Keller Williams, Worldwide
- 2017: America's Best Real Estate Agents, RealTrends.com
- 2017: Top 25 Residential Realtors in Houston, Houston Business Journal
- 2017: Texas' Most Influential Realtors
- 2016: #1 Individual Agent, Keller Williams, Texas
- 2016: #1 Individual Agent, Keller Williams, Houston
- 2016: #20 Individual Agent, Keller Williams, Worldwide
- 2016: Texas' Most Influential Realtors
- 2016: Top 25 Residential Realtors in Houston, HBJ
- 2016: Five Star Realtor, Featured in Texas Monthly
- 2016: America's Best Real Estate Agents, RealTrends.com
- 2015: #9 Individual Agent, Keller Williams, United States
- 2015: #1 Individual Agent, Keller Williams, Texas
- 2015: #1 Individual Agent, Keller Williams, Houston
- 2015: America's Best Real Estate Agents, RealTrends.com
- 2015: Top 25 Residential Realtors in Houston, HBJ
- 2015: Five Star Realtor, Texas Monthly Magazine
- 2014: America's Best Real Estate Agents, RealTrends.com
- 2014: #1 Individual Agent, Keller Williams Memorial
in addition to over 318 additional awards.
Paige also serves a variety of non-profits and civic and community boards. The mayor of Houston appointed her to be on the downtown TIRZ board.
Benefits Of Working With The Houston Properties Team
Our team, composed of distinguished and competent Houston luxury realtors, has a well-defined structure based on the individual strengths of each member.
We find the team approach as the most effective way to sell homes. We have dedicated people doing staging, marketing, social media, open houses, and showings. Each Houston Properties Team member is a specialist in their role—which is why our homes sell faster and for more money than average.
The benefits of working with a team include the following:
- Ability to be in two or three places at one time; a member can handle showings while another answers cal
- Collective time and experience of members
- Targeted advice and marketing of agent experts in your area
- Competitive advantage by simply having more resources, more ideas, and more perspectives
- A "checks and balances" system; selling and buying a home in Houston is an intensely complex process
- More people addressing field calls and questions from buyers and agents to facilitate a faster, successful sale
- Efficient multi-tasking; one agent takes care of inspections and repair work, while another agent focuses on administrative details
- Multiple marketing channels using members' networks
- Constant attention: guaranteed focus on your home and your transaction
- Lower risk for mistakes. Multiple moving parts increase oversights. A team approach handles these "parts" separately
- Flexibility in negotiation and marketing
- Better management of document flow
- Increased foot traffic through more timely and effective showing schedule coordination; and
- Increased sphere of influence and exposure to more potential buyers.
To meet all the award-winning members of the Houston Properties Team, please go here.
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