Price Cuts Hit a Record High, What central Iowa Sellers Should Do Now

More than 1 in 5 home sellers cut their asking price in the four weeks ending October 11, according to a recent housing marketing update from Redfin.  

It’s the highest share in Redfin’s records, which go back to 2021.

If you’re thinking about selling in central Iowa, I’d guess the last thing you want is a price cut a few weeks after your home hits the market. Am I right?!?

Nobody wants to list their home, wait around and then have to drop their  price. The good news is that most of what leads to a price cut happens well before the sign goes in the yard, which means you actually have a lot of control over it. 

Here's what you can do to set yourself up for a sale at the right price, the first time.

1. Price for today's buyers

A lot of sellers set their price based on what a neighbor's home sold for last spring, or what they've heard homes were going for a year or two ago, or the asking prices they see on Zillow. The market moves faster than that and an asking price is not the same as a sale price. 

Mortgage rates are a huge part of the story right now. When rates climb, buyers can afford less each month, even if they love your home. That's why the most useful comparisons are homes like yours that sold or went under contract in the last few weeks. Go back even a few months and you may get the wrong picture.

Ask your agent to walk you through what's sold recently near you, what's sitting, what’s been reduced and what today's buyers in your price range can comfortably afford. That conversation is the best protection you have against pricing too high from the start.

2. Think of your list price as an invitation

Your asking price is the first thing buyers see and it decides who shows up to see your house. Price it right and you get the right buyers walking through the door. Price it too high and those same buyers scroll past yours to a home that feels like a better deal.

Homes priced right in line with similar homes nearby tend to get the most attention. More attention means more showings and more showings mean a better chance of a solid offer. 

It can feel counterintuitive to start lower than you'd hoped. But a home that draws a crowd early usually ends up in a better spot than one that starts high and has to come down later.

3. Make the most of your first few weeks

The first few weeks on the market are when your home gets the most eyes. Buyers who've been waiting for something new set up alerts and a fresh listing goes straight to the top of their list.

That window matters. Recent Realtor.com data found that homes selling around the four-week mark got the strongest prices, while homes still on the market months later sold for noticeably less.

The longer a home sits, the more buyers start to wonder what's wrong with it, even when nothing is. That's why getting the price and presentation right on day one does so much of the work for you.

4. Know what to expect, and what happens if things are too quiet

Before you list, sit down with your agent and talk through what a healthy first couple of weeks looks like for a home like yours. How many showings is normal in your neighborhood right now? When would you typically expect to see an offer?

Then ask the harder question: if the activity isn't there, what's the plan? Maybe that means adjusting the price, freshening up the photos or rethinking how the home is being marketed. Whatever it is, you'll both know the plan ahead of time.

Having that conversation up front takes a lot of the stress out of the process. If things are slow, you're working from a plan you already agreed on instead of guessing, waiting, and hoping the right buyer shows up.

5. Win the first impression online

Almost every buyer sees your home on a screen before they see it in person. If the photos don't grab them, they may never book a showing. A few simple steps before photo day can go a long way:

• Declutter. Clear your countertops, tuck away personal items and give each room some breathing space. Remove personal photos, collections and excess decorations. 

• Clean the windows. Streaks and smudges show up in photos more than you'd think. Learned that one the hard way. 

• Turn on every light and open the blinds to let natural light in.

• Boost your curb appeal. Mow the lawn, trim the bushes and add a potted plant or two by the front door. The front photo is often the one that decides whether a buyer clicks. The drive by they do before they call their agent is your make it or break it moment.

• Show off your best features. If you have a great kitchen, a fireplace, or a big backyard, make sure it's clean, clear and ready for its close-ups. 

6. Remember that price is only one part of the deal

When buyers push back, a lower price isn't always the best answer. Sometimes what they need is help with closing costs, a few repairs taken care of or money toward lowering their mortgage rate. These are called seller concessions, and they're common right now. Redfin found that nearly half of recent home sales included at least one.

A concession can solve a buyer's real problem, like coming up with cash at closing or getting a monthly payment they can live with, while keeping your sale net proceeds where you want it. Talk with your agent (that’s me!) about which options make sense in your market so you're ready if a buyer asks.

Final thoughts

National headlines are a good gut check, but they can't tell you what your home will sell for. That comes down to your neighborhood, your price range, and what actual buyers in Ames, Jewell and Story City are doing right now.

If you're thinking about selling, the best thing you can do is be prepared and have a plan. Look at what's actually selling near you, get your home ready before day one and know your plan if the first couple of weeks are quiet. Sellers who do that give themselves the best shot at getting the sales price they want, without having to keep lowering it.