Intelligent Pricing

Your best chance of selling your home for the highest fair market value price is in the first 30 days of marketing. This will depend on how well you use intelligent pricing to price your home based on market timing. During the first 30 days, your home is brand new on the market which makes it fresh and exciting to buyers and to their agents. This is especially true since inventory is currently low and buyers and their agents are looking for more choices to pick from.  If priced intelligently, with a for sale sign in the yard, a description in the local Multiple Listing Service with pictures and virtual tour, distribution across the internet, open houses, ads, and email blasts to your listing agent’s buyers, your home will get the greatest flurry of attention and interest in the first four weeks. The best chance to get multiple offers is when there are a lot of showings and exposure to the property which gives the change for full price or above full price offers. So, if a home is priced intelligently based on the market  timing it will show a lot and sell quick.

I need to point out that intelligent pricing isn’t about just getting the most for your home – it’s about getting your home sold quickly at fair market value.

Fair market value is what a willing buyer and a willing seller agree by contract is a fair price for the home.  Again, unless it is a cash deal the property still has to appraise. If it doesn’t the contract has to be renegotiated and the buyer will have to come up with more money to close. The other option is for the seller to reduce the contract price. Since buyers don’t normally want to do this, they shy away from overpriced properties. In addition, over pricing prevents the buyers who are eligible to buy the home from ever seeing it. Most buyers shop by price range, and look for the best value within the range.  Even with there being a shortage of inventory, buyers are still very price sensitive and are passing over homes that are overpriced.

Pricing a home is much art as science, but there are a few truisms that never change.

• Fair market value attracts buyers, overpricing never does.

• The first 30 days of marketing are crucial.

• The market never lies, but it can change is mind.

• If financing is involved the property needs to appraise.

Keep intelligent pricing  and market timing in mind to avoid losing showings.

Many agents and buyers just won’t put over priced homes on their short list of properties to look at.  It may not even get on the long list. If a buyer doesn’t look at a property, then chances are they are not going to make an offer.  Remember buyers don’t want to pay more than the perceived value of a home against it competitors.  Also, agents don’t want to show properties of unrealistic owners, because they perceive that the chances of an offer a negotiation working are much less than a realistic owner.

Again, less showings means less exposure and less of a chance of an offer.  If you don’t get many showings or offers during the first 2 weeks, you’ve probably overpriced your home, and it’s not comparing well to the competition. Since you can’t change the location of your house, you’ll have to improve the home’s condition or lower the price.

Consult with your agent and ask for feedback. Perhaps you can do a little more to spruce up your home’s curb appeal, or perhaps stage the interior to better advantage.

The market can always change its mind and give your home another chance, but by then you’ve lost precious time and perhaps allowed a stigma to cloud your home’s value. Meaning it will sell, but for less money than you would have gotten had it been priced right to begin with.

The best approach if you must test the market price is to have a plan with your agent to be proactive if the home is not showing a lot during the first 2 weeks on the market. For example, have a plan of price of a price reduction if the home has no offers after 2 weeks.  Make sure you get an agent that knows how to do A comparative market analysis and to market and highlight the features of your home that distinguish you from your competition.

The first step s is to have a comparative market analysis done on your home, to create a marketing and pricing strategy for your home with your agent. For FREE consultation to start the steps to sell your home. Contact us know for more information.