Is the title a little dramatic?
Maybe.
But, the rule of thumb in this hot market is to curb the immediate greed impulse and think logically. Logic and greed are not definitely not compatible.
In real estate, especially the market we are all currently living through now, price is king. It will dictate how fast the home will get that sweet offer!
The Danger of Pricing Too High
The rule of thumb I tell my clients is: it is not about how fast your home will sell, it is all about how much it will actually sell for. All about that supply and demand!
Let’s be honest, seeing the current trends of rising prices, I can understand why sellers feel like an initial inflated list price of their home would produce an offer.
But even in a competitive market, buyers have a limit. Many buyers right now have been searching for several months, and they have a general understanding of what homes in their price range look like. So if they see a home that seems overpriced compared to others they have been looking at, they won’t even bother to schedule a showing.
The smarter move would be the list the home with a competitive, price true to the comparable market trends. In other words, a price in line with current sales pending and closed sales for homes similar to yours.
List prices are like morse code to the buyers. It sends the message that the physical home truly reflects the list price (or in many instances, the list price is under the current market price), which in turn sends the message that the home is worth every penny!
Price to Sell
The stronger the appearance in value, the higher the probability of selling your home above the list price. So, how do you decide on the initial list price?
Well, first hire an agent that will prove and provide the data behind the numbers. Data and numbers do not lie!
Second, like bread, real estate has a shelf life. If left out too long it goes stale!
How do you make sure your home doesn’t become stale?
Go back to the first rule! Hire an agent that knows the data and numbers and remember…the list price isn’t the end price.
It’s just a starting point to where you ultimately want to end up at. And this seller’s market has shown buyers are willing to do whatever it takes!
Questions about selling in the current market?
Wine is the Answer 