When I list a seller’s home, we typically look over the sales in their immediate area right before we list the property. In some cases we know well ahead of time at what price we will list, but we always double check. We want to see if a sale has raised or lowered the value we intend to assign to their home with out list price.
Determining Price
A home also holds a different value once it has been made ready with de-cluttering, cleaning, market prep and staging. Doing the right make ready to list your home can definitely add value.
Every once in a while, I have a seller who values their home much higher than the market will. As always, I am a guide to my clients, not the director of the show. I’m here to share what will happen, how the home will be received and perceived based on my experience, and what best practices are in our current market. I’ve been known to list a property high. It always ends with a price reduction.
Reducing Price
If we make a clean cut and price the home right with our first reduction, I’ve had great success stories. Even multiple offers in a few instances after being on the market for over 30 days have resulted. That’s the power of a well presented and well priced home.
If we inch down incrementally, it typically causes my seller(s) stress. They don’t want to leave money on the table or perhaps think the ‘right’ buyer will come along. I’m still in the game as a counselor, guide and listening ear. I don’t give up on my clients! I stay in weekly touch showing them how the market is performing and how their home stacks up with the activity and competition surrounding their home. I do hate to see them stress through the process of an over-priced home though.
Pricing Power
The best power play is to list a property at a price that will appeal to the mass of buyers. The more buyers that want a home, the more likely they will drive the price up themselves. Overpricing takes this opportunity off the table. A list price can be on the high side of what appeals to buyers and still strike the right chord in the market. An overpriced home will not resonate, and the market will tell my sellers this all on its own through low to no showing activity.
Links to a few great articles to consider on this topic.
