The Price is Right!

The Price is RightMany people believe that the best way to maximize the sale price of their house is to set the list price high and hold out for a great offer.   Although not impossible, this approach usually does not work and they may end up with their house on the market for 180 days or more and actually get less than market value for it.   When “the price is right” you usually get more money and sell much faster.   Here are the three reasons why:

1st off, a buyer working with a good agent can quickly identify homes priced above market value.   In the interest of time these homes are usually dropped from consideration.   Keller Williams data suggests homes listed more than 15% above market value only get 1/10 of the showings.    Sure, there are bottom fishers that will not pay market value, but by listing at market value you get the bulk of serious buyers through your home and you might get an offer above market!

The Price is Right

The 2nd reason is buyers have different levels of readiness/willingness.   At the top are the well educated buyers who may have made previous offers that were not accepted.   They are usually pre-qualified, know what they want in a home, need a home very soon, and usually their offers are reasonable and solid….they are sure they want to buy your home.    These buyers are waiting for new properties that meet their needs to come on to the market, so it is no surprise that they are touring your home in the 1st days your house is on the market.   Generally, the best and most solid offers will come from this group if the price is right…this is who you want to sell to.

The second group of buyers are those who are just getting started, they may not know exactly what they want yet, they are probably not pre-qualified, don’t need a home yet, and their offers may fall apart since they are not sure what they want or if the price is fair.   The third group are brand new buyers who enter the market several weeks after your house was listed or they may be investors looking for a great deal.   Neither needs a home now, both are motivated only by great deals, and often the deals fall apart.   It is best to avoid this group of buyers if possible.

The 3rd reason to price your home right is the DOM factor.   The DOM or Days On Market is clearly listed in the MLS and other listing services.   Everyone is excited to see new homes and their possibilities.  By time your house has been on the market 180 days it is appealing as month old bananas.    Buyers will always ask their agent “what is wrong with this one?”

So the moral of the story is get get your house very well prepared, staged, and ensure the price is right so those educated buyers walk in and think “this won’t last long” and then they make a great offer right away, which by the way is usually the best offer!Barbara Green West Cary Real Estate

Barbara Green is a real estate professional who specializes in West Cary, active adult, and luxury real estate. If you are looking to sell or buy real estate in the Cary, Apex, or Morrisville area of North Carolina, give me a call or visit my website at www.Cary-NC.com to get started today!

Leave a Reply