We often encounter sellers who don’t want to look realistically at their competition. We understand the psychology. We’ve been victim to it ourselves.
It’s not magic. There’s no voodoo involved.
Sure, you should freshen your home’s paint both inside and outside. Expend some effort on curb appeal while you’re at it. And talk to —- about some level of staging for the interior.
These things will pay off. But only IF you price your home competitively. And that’s ONE BIG IF.
What we often encounter in listing appointments are sellers who don’t want to look realistically at their competition. We understand the psychology. We’ve been victim to it ourselves.
It’s a proven fact about human nature that we value what we own, often to an unrealistic degree. That’s why we hold on to stocks that we should have dumped years ago. That’s why our garage is filled to the ceiling with “priceless” treasures that will be worth a “fortune” someday. And some of us (cough) even spend hundreds of dollars a month on storage units for stuff we can’t bear to part with but won’t ever use again. Why? Because it’s OURS. We selected it. We’re attached to it.
We worry so much about a minor short-term loss that we forgo a potentially significant long-term gain. That’s where your real estate agent comes in. We can show you how your competition stacks up and then create a winning strategy for getting top dollar in record time for your home for sale.
Pricing to Sell Your Home Fast
Numerous studies indicate that a home’s first two weeks on the market are the most critical to a successful sale. During the first two weeks, your home for sale gets the majority of its total web searches. Both buyer’s agents and potential buyers have set their home search alerts to ping them when a new home that meets their specifications hits the market. If that home doesn’t grab their interest during those critical first few seconds, it is often never looked at again.
And what are buyers and buyer’s agents doing when they surf for homes for sale on the web? COMPARING. They zone in on a neighborhood and a price range–and they compare. Today’s savvy home buyers want the most value for the dollar.
Positioning Your Home Competitively
Try this yourself, for your neighborhood, in the price range for which you hope to sell your home. Are you on the money? Is your home the IT home in your neighborhood, in your price category?
If your home is not priced competitively, most buyers will simply move on. Home buyers usually have a price range in mind, so you must target buyers who can afford to pay what your home will ultimately sell for.
If you price too high out of the gate, you’ll lose those buyers who set their search parameters to a lower price range.
Pricing Strategically for Top Dollar
This is called the Price High & Test the Market strategy. Sounds reasonable. Except it doesn’t work. Not in today’s real estate market–where information is readily accessible on the web, and comparative analysis is as fast and easy as a few keystrokes.
Over-pricing your home for sale wastes precious peak attention time. The longer the clock ticks, the less chance you have of getting top dollar for your home.
Potential buyers can see how long your home has been on the market. As weeks and months go by without a sale, buyers become increasingly wary of the value of your home. Who wants to purchase a home that everyone else has passed over? What’s wrong with it? No one wants to buy someone else’s problem. And whatever buyers do come forth after a month or two are often what we call Bottom Feeders. They’re looking for a Screaming Deal.
According to one recent study, homes that sold within their first week on the market garnered an average of 2% above original list price, while homes that languished on the market for four months sold for 11% below original list price.
Pricing your home for sale right from the start makes a tangible difference.
Whether you’re buying or selling, give us a call today at 971-804-4618. We know the Portland real estate market, we’re top-notch listeners, negotiators, problem solvers, and marketing pros–and we’re here for YOU.
Tell Me More
- Five Signs Your Home Is Overpriced | Forbes
- 5 Ways to Vividly & Painlessly Prove the Dangers of Overpricing | Trulia
- Nearly a Third of Sellers Will Overprice on Purpose | Seattle Bubble
- Understanding Investment Psychology When Investing in the Market | Shabbir Bhimani