Here’s what happens when you price your home for sale higher than what current comparable homes have sold for. ZERO. ZIP. ZILCH.
Why is this? It’s because buyers today have easy access to all data for every home for sale in any given market area. Buyers are smart. They CROSS COMPARE. And of course they want the best home they can get for the money they have to spend.
Pricing you home for sale in today’s competitive market is part art, part science. Getting it right depends on analysis of current market trends for a particular neighborhood, as well as a deep market knowledge that makes intuition more than just a hunch.
The Wisdom of the Herd
When a seller prices their home too high, it simply gets ignored. Recent analysis by RedFin Research indicates that a home listing gets nearly four times more visits on real estate websites during the first week on the market than it does a month later.
Your best chance to sell your home is within the first month it’s on the market. After that, interest cools. And by the end of the second month, well, there is no interest.
Many savvy home buyers use Custom Search tools to eliminate any home that has been on the market for more than 60 days from their search results.
Why? Because any home that has been on the market for more than 60 days has been scrutinized and passed on by countless other buyers. This indicates that either something is wrong with the home or it isn’t priced right. The savvy buyer is simply relying on the wisdom of the herd.
One of Life’s Mysteries
It’s one of life’s mysteries as to why the potential home buyer doesn’t simply make a lower offer on an overpriced home, rather than pass on it altogether. But in general, they don’t.
So don’t be tempted by the all too common “test-the-waters” tactic. You know, pricing your home high to see if you can snag an unwary buyer. It doesn’t work.
Even when you lower the price or remove the listing from the market and then re-list it, the listing gets less than half the attention it got originally.
It’s like shopping at Nordstrom Rack. If you are a talented shopper with an eye for fashion, you can get a deal. If not, you end up with something unattractive or unstylish that hundreds of more knowledgeable shoppers have scorned.
Most home buyers don’t have the expertise or confidence to go it alone, against the wisdom of the herd. A lot of money is at stake and caution runs high.
It’s Human Nature
Here’s another thing that we have observed in the selling of homes. We chalk this one up to human nature.
As a knowledgeable real estate team, we price a home just right, not too low and not too high. We try to hit the Sweet Spot.
Savvy buyers are waiting for just this home, in just this neighborhood, at just this price. They have been watching the housing market for weeks or even months. They have set up Market Alerts that inform them the moment a new listing that matches their parameters hits the market. This is it! They pounce.
Multiple offers ensue, each one upping the ante. The home, which was priced right from the onset, is now selling for more than the asking price.
Why? Because human beings are competitive social animals. If others express interest in something we like, it increases its importance to us. We now want it even more, bolstered by the assurance that others value it as well. It’s just how we roll.
One Final Caveat
Trust your knowledgeable real estate team. We live and breathe Portland real estate. We know each neighborhood like the back of our hand–it’s advantages, peculiarities, popularity. In our spare time, we scour each neighborhood and write neighborhood guides to give you access to our insights.
And we have a dedicated Listing Agent and Marketing Director on our team. Their job is selling your home.
When you enlist our team, we assess your home’s competition using the latest technology and intensive research. We aim to sell your home, for the absolute top dollar it can get, within a short 60-day window of opportunity.
And after our analysis, we know EXACTLY what price will accomplish that in today’s market.
There’s Always More
- RedFin Research: 40% of Home Sellers Plan to Price Above Market Value
- RedFin: Top Five Home Selling Tips From RedFin
- Tallahassee Real Estate: A Clear Explanation On How To Price Your Home For Sale