“Strategic” vs “ambitious” pricing

Most people don’t realize how critical it is to price your home correctly from the moment it hits the market.  Starting off with an ambitiously high price usually leads to a situation where you are “chasing the market down”.  You’ll end up sitting on the market a long time and netting less than had you priced it correctly from the start.

What is “the correct price”?

Especially in this market, buyers are not interested in a purchasing a property unless it is perceived as a deal.   Does that mean you have to give it away? NO!  But you DO need to price it generate traffic, LOTS of traffic, because no traffic means no offers.  No offers, no sale!

The first days on the market

When your property first hits the market, you will notice a huge wave of activity.  These potential buyers are generally experienced buyers.  Chances are they have already defined what they want, they have seen everything in that niche (e.g. 3-4 bedroom homes in the 92014 zip code, within $800-$1m) and are ready to write an offer.  When they see your home, they’ll compare it to everything they’ve already seen.  They’ll either like it enough to write an offer – or they won’t… 

The waning of activity

After the first couple of days, you’ll notice a steep drop off in showings.  Why? Because those who were really interested in seeing your home and truly ready to buy, already saw it.  You may have a few potential buyers come on the third or fourth day who were unable to see it in the first day or two, but for the most part, showings will slow to a trickle. Those viewing your home at this point are typically not very familiar with the market – maybe they only recently started looking or exploring your area.  Even if they love your home, they usually don’t feel comfortable or educated enough to make a move.

Capture the wave!

The fact is, if an offer isn’t generated from that initial wave of buyers, the market is “speaking to you”.  It’s telling you your home is overpriced.  Price it slightly under the competition, generate some excitement, maybe even a multiple offer situation, and net top dollar.  Our most recent listing got 3 offers, sold in 4 days at full price.  For a consultation on why your home isn’t selling, give us a call 760-815-1318.