The Market has Changed: How to Price Your Home Now in Bozeman

There's no doubt about it the real estate market in Bozeman has changed this year. At the beginning of 2024, the median sales price of a home in Bozeman was around $762,000. Throughout the year it has remained steady in that range and decreased slightly in the past few months. This has been a big difference from what was happening the years after COVID with prices skyrocketing. We have seen a ton of price reductions throughout the summer months and lots of new listings. There are reports of interest rates coming down this fall which could bring more buyers off the sidelines and an increase in prices. With all the varying information it's hard to know how to price your home in Bozeman right now. 

DON'T PRICE FOR THE HEIGHT OF THE MARKET

There is no doubt the real estate market in Bozeman has been crazy these past few years which skyrocketed home prices. There have even been a few months when the median sales price of a single-family home in Bozeman was over a million dollars! Things have changed since those days. Once interest rates started to rise, inventory increased and prices stabilized. In 2024 we have seen a ton of homes on the market that are taking much longer to go under contract. If you are looking to sell your home, you cannot price for the height of the market. These are the homes that we see sitting. When priced appropriately, inventory is still moving in Bozeman. Sellers have to realize you can't price your home for what things were going for during 2020-2022.

ZILLOW ZESTIMATES ARE NOT RELIABLE

Montana is a non-disclosure state, which means no one has access to the sold prices of a home other than members of the MLS. Without this sold data any online valuation tool is only using data like the listing price, location, and square footage. This makes it more of a guess. Talking to someone who has access to this information is going to give you a much better idea of what your home is worth and how to price it. If you are curious about the value of your home, click here. 

WORK WITH A REAL ESTATE AGENT

Talking with a real estate agent is the best way to get an accurate value for your home. An experienced agent will use comparables of what homes have recently sold for in your neighborhood. With that they will consider the condition of your home, upgrades, remodels, and current market conditions to give you a price they think you should list your home for. The best part of working with an agent to price your home is you can talk it through to come up with a price you both agree on. They can explain how they came to it so you understand what your home is worth and how to price it to sell!

BUYER AGENT FEES

Due to a recent NAR settlement, how real estate commissions are handled has changed which should be taken into consideration when you are pricing your home. For decades listing commissions have averaged between 5-6% between buyer and seller agents. Now agents cannot advertise an offer of compensation to buyer agents on MLS. This agreement doesn't bar seller agents from paying a buyer agent a commission. This new rule might make a seller think they can save money by having a lower listing fee. However, there are many advantages of still offering a buyer agent commission such as attracting more buyers and getting a higher selling price. Find out more here. When thinking about how to price your home, make sure to consider these commissions. 

If you want to know more about selling your home in Bozeman, click here. Just curious about what your home is worth, Find out here.

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