Pricing your home properly in this market is the single most important thing you will have to do if you want to sell your home. I have sellers calling me daily looking for advice and searching for that magic pill but there isn’t one. I can tell you what won’t sell your home! My face on a bus stop will not sell your home. Just listed cards will not sell your home. They might get me a few more listings but I feel I should earn my business in other ways. So what will sell your home? … Exposure to the whole market will help sell your home. Understanding the market and where you stand in it will help sell your home and proper pricing will help too. By themselves they don’t add up to much but put these together and you have a pretty good formula for success.
Numbers never lie but they can be misleading, take for example the increase in the average price. Does this truly reflect what’s going on in the market? No it doesn’t. Numbers are like computers, you get out what you put into them and in this case the average price, when analyzed properly is telling us that buyers are getting much more for their dollar. It’s like selling five houses in February at a price each of $100,000 and selling another five in March for $100,000. In both months the average price is $100,000, but what if the homes sold in March were larger? Or were in better locations? You can see how the average price doesn’t tell the whole story. Truth is housing prices are falling, supply is way up and buyers are seeing their dollar go much further than in the past.
When I price a home, I talk extensively on the risks of not being immediately competitive in our pricing. My aim is to sell as quickly as possible, not because it’s in my best interests but because it’s in the best interest of my seller. The risk of not selling quickly when prices are trending downward is high and can cost sellers thousands of dollars. Pricing is complicated it takes understanding and experience because every home and every situation is completely different from the other.
Supply continues to be an issue and as long as it is, don’t expect prices to move upward, it’s the law, the law of supply and demand. Buyers are king in this market and if they don’t like what they see or aren’t comfortable with the price they will just move on to the next house. It’s not enough to get offers anymore, now you need to work hard to ensure they hold together, buyers are walking away from deals for the smallest of reasons so get help. Choose a Realtor® to work for you that has the experience to deal with today’s tough issues and prepares you for the many different scenarios you may encounter.
I always talk about the difference between perception and reality and never before has this meant so much to both buyers and sellers. For sellers it’s about simply getting sold. For buyers it could mean thousands of dollars saved…or lost!
This article is the opinion of Rod Thompson and in no way should it be used by itself to make any critical real estate or financial decisions. If you wish to discuss this article or your own situation with Rod, please feel free to contact him. Not intended to solicit buyers and sellers currently under contract.