Pricing a home correctly is crucial in all markets, especially in a down turn market like now. Many agents will tell you, “days on the market in my area is almost 6 months”. Very true, but how long is the days on the market for SOLD properties? In most markets it is still between 45-60 days. So the truth still holds strong, properly priced homes that are well maintained/staged will still sell in a reasonable amount of time. This can be great news for you as a seller….you can realistically sell in less than 60 days!
The power of pricing is amazing. Now, this is when having an agent that is well informed in your market, and honest with you, the sellers, is important. It can help get a SOLD sign on your property.
Is pricing a hard conversation in this market? Yes, it is. It is uncomfortable, disheartening, and for many sellers… upsetting.
However, if this this conversation is not had, property could Expire(I know, Its almost as bad as a four letter word.) At the end of these six months, the agent is known as “the one who didn’t get the job done”, and you , the seller, is in a bind. Possibly even balancing two mortgages
As Agents, it is important that we determine our sellers motivation for moving, this motivation will help determine if they are willing to do what it takes to sell this home in 45-60 days. That means keeping it clean, neat, show-able, and priced accurately. That allows us to maximize our marketing efforts!
It is our job, and duty as agents to inform and educate our sellers about the current market conditions and what it takes to get their home sold. The graph above illustrates the percentage of potential buyers who will look at a property at a certain asking price. AT current market value, 60% of total buyers searching for a home similar to yours will consider view it-whether that be looking into it on the net or having a showing.
If you price just 10% above market value, you are down to 30% of the potential buyers. Making it much more difficult to sell that listing. Now there are several other factors that go into selling a home like condition, location, marketing….but ultimately pricing is going to be the biggest factor.
So, if you the seller, have a job transfer and need to sell NOW, pricing just below market value may be the key to moving that property in 30 days or less. After-all, you’d be attracting 75% of potential buyers!!
National Association of Realtors studies show that the first 30 days a home is listed are its most enticing to buyers. That first 30 days is when they get the most traffic. It is important that they are priced accurately.
In this day, don’t be surprised if you speak to an agent and they decide not to put your home on the market. It is not uncommon these days. For me to list a home, I have to feel it is not only in the sellers best interest to work with me, but my best interest to work with them. If the seller is not willing to do what it takes to put their house at the top of its game, then I thank them for their time, pick up my briefcase and go.
Simply Said. I WILL NOT TAKE A LISTING THAT I DO NOT THINK THAT I CAN SELL!
Be wise when speaking about pricing to your agent. My goal is to get my seller top dollar for what their home is worth in a reasonable amount of time……..not overprice it and cross my fingers that someone bites.
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