How to avoid overpricing properties in a shifting market

If your market has begun to slow, understanding how to properly price homes in a declining market — and how to talk about it with clients — is critical.

No matter how good the market is, there are always overpriced listings. What happens, however, when your market goes flat or worse yet, begins to decline? The consequences of overpricing are even more costly.

According to the 2019 NAR profile of home buyers and sellers, 40 percent of sellers had to reduce their price at least once. If prices have already peaked in your market and have now started to decline, an even greater number of sellers will be reducing their listing prices in the very near future.