THE POWER OF INTELLIGENT PRICING
The most challenging and yet most important piece of selling a home is its price point. If listed above market value, you will miss out of prospective buyers who would be prime clients to buy your home. If you list at price too low, you are doing a disservice to yourself by missing the true value of your home.
Percentage of Buyers by Asking Price
If priced at market value, you will have much more exposure to interested buyers. The price sold will reflect the value of your home due to the exposure to buyers
- 60% of buyers will be interested in your home if you price at market value
- 90% of buyers will be interested in your home if you price -15% of market value
- 10% of buyers will be interested in your home if you price +15% of market value
Activity Vs. Timing
When a new property is listed there is high interest, excitement and attention. Having a successful launch of your listing is imperative to find a willing and able buyer. Homes that are incorrectly priced will lose momentum quickly if have any at all. The final sales prices could be under the market value.
- The first 30 days have proven to have the most showing activity
- After the first month, activity will slow especially by week 6
The Effect of Overpricing
The first 30 days of listing a home is the best time to sell. This is when you will have the best chance of getting your listing price. Over time this number decreases the longer a listing sits on the market.
- 0-29 Days: Initial Listing Price Discount -1.3%
- 30-59 Days: Initial Listing Price Discount -4.7%
- 60-90 Days: Initial Listing Price Discount -6.5%
- 90+ Days: Initial Listing Price Discount -10.5%
PRICING STRATEGY EXPLANED
Factors outside of our control:
- Location of the property
- Finished square feet
- Types of rooms
Factors we can control
- Appearance of the property inside and out
- How aggressively we market the property
- The price, including terms
We need to accept the factors we cannot control and focus on pricing and preparation. Pricing your property correctly is critical. If you price too high or low, it will cost you time and money. You should want to sell your price at the highest price possible in the shortest amount of time.