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Two Simple Truths About Selling…Nobody Is Talking About Part 1

The first truth is that strategic pricing sells homes faster and for the most money.
(If you haven’t watched The Tale of Two Homes video we shot, go to our YouTube channel and check it out)

This is a two-part series and we’re going to start with strategic pricing.

If you want to get the most money out of your house when selling, the way you position the home in the marketplace through pricing is critical. You have to position with a price that draws the most demand. In a changing marketplace, as we move from ultra low-interest rates to higher interest rates, pricing is more important than ever. Being priced wrong could be the difference between selling your home or not selling at all.

Overpricing your home the last few years wasn’t a big deal, homes were in such high demand that no matter the price you could get lucky and make a ton of money. But overpricing your home in today’s marketplace could mean the difference between selling your home in ten days or selling your home in a thousand days with massive and continuous price reductions.

Now, contrast that with underpricing your home.

You might sell it quickly, but you could leave hundreds of thousands of dollars on the table. So how do you solve this pricing issue? How do you make sure you price it right?

You have to consult the experts, someone that is selling hundreds of homes in recent months that understands the evolving market conditions.

The average agent sells seven homes a year. Half of all of the realtors in the United States actually sold zero homes last year!

The recency of experience should not be undervalued in a changing market. You need an agent that knows what’s going on right now in the marketplace, that is knowledgeable about interest rates, has insight into how the entire economy is reacting to changes, and they should be able to articulate how it will affect home sales moving forward.

There are so many variables that go into accurate pricing.
What is the Condition of the home?
Is the location good?
How many showings are expected in the next 30 days?
What’s the average list price to sell price ratio in the marketplace?
What are the average days on market for that specific price point?
What are the inventory levels like?
Where are the buyers coming from?
What type of financing are they obtaining?
What interest rate will they get?
What are their qualifications?

It’s not just the comparable sales you have to analyze. You can’t just go to Zillow and look at the Zestimate because it doesn’t tell you how to position on the marketplace to attract the best buyer for the most amount of money. Strategic pricing and taking into consideration all the variables is absolutely critical when it comes to getting the most money in today’s market.

If you’re thinking about selling in the next six months, what do you do?

The first step is to get a baseline of what your home was worth, “as is” with no repairs. Reach out to our company and we’ll tell you what it’s worth, “as is” with no repairs. But we’ll also tell you what you could do to improve the value of your home. It might make sense to increase your price point with some low-cost or quality improvements to attract more buyers willing to pay more for your home.

Stay tuned because our next video is going to be on where the marketing dollars need to be spent to get your home marketed and in front of the right qualified buyer.

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