How to Get Your Listing Price Share
November 4, 2014
With the real estate market picking up and home values increasing, many home owners are thinking about listing their homes. For serious sellers, the goal should be to sell the property in a timely manner and maximize profits, which most likely means getting the full list price.
So how does one get their list price, or even better, offers above their list price? It all boils down to one factor: Pricing.
So often I hear, “We are going to list it just above market value, and will negotiate once we get offers.”
In reality, Sellers are shooting themselves in the foot from the start. While that can be a perfect strategy for open markets and garage sales, this strategy doesn't cut it in the real estate market.
With countless tools, research and experienced real estate agents at their disposal, buyers are more educated today than at any other point in history. Many serious buyers have a better understanding of the property values in your neighborhood than even you do, having done in depth research with their realtor and actively viewing comparable homes.
When buyers price their homes too high, a snowball effect takes place rapidly eating away their profits and making their home look less appealing to buyers. The biggest impact comes from the decreased number of viewings and activity. The first two weeks sets the tone for the entire listing life. It should also have the most viewings because your property holds the coveted new to the market status. Qualified buyers recognize the seller is asking “too much” and opt to view other properties.
With little to no views and no offers, sellers become desperate, reducing the price of the property. By this point, the days on the market have increased, adding to the negative connotation of a discounted property or worse “what’s wrong this property”. By the time an offer comes in, the sellers are exhausted and so grateful for an offer; they will actually take below fair market value, eager to be rid of the home.
Had the sellers listed the price correctly in the beginning, they would actually make more on the sale than after an inflated price. In a hot market, 25% of buyers are willing to offer above the list price if they know there are multiple offers. But that can only happen if enough qualified buyers view your property. And qualified buyers tend to only visit properties correctly priced.
If you are thinking about selling your home and are interested in a competitive market analysis (CMA), give me a call 619-980-2738 today! With over two decades of experience, I can help you list your home at the right price, getting your home closer to sold.