Why is Pricing is the Key to Selling Well? And Getting your Best Sales Price…
Real estate markets epitomize classic market behavior with periods of appreciation followed by a high point, consolidation, excess inventory, reduced values, a bottom, then a run-up in values again typically with low inventory until market saturation presages the decline..
However, no matter at what point of the cycle a property is being sold, pricing is the key to maximizing Seller’s returns. In up-markets with little inventory and strong demand, realistic pricing can create competitive interest in the property and sometimes push the sales price above the initial impression of indicated value. And, conversely, when the market begins a transition, accurate pricing is a powerful tool to differentiate a listing and attract more cautious Buyers.
Buyers in the desirable and higher priced Southern and Central Marin County neighborhoods in the San Francisco Bay Area market are smart and sophisticated. They understand value and typically have acquired a broad database of market information that internet information sources provide. Many have bought and sold a number of homes.
And, they understand the fundamental fact that Sellers determine value and ultimately what a property will sell for as the Sellers are the one’s parting with the money to buy the home.
Unfortunately, many listing agents aren’t skilled at pricing. Some don’t have the data and analytical skills to determine the most probable value given the market. More often they agree with a Seller’s uniformed “wish” or “need” price just to get the listing. Sometimes, they play to a potential sellers feelings of an exaggerated value by suggesting an overly aggressive list price just to sign a listing, knowing full well that they will be back in 30-60 days with a changed story as to why the price must be reduced. In the meanwhile, the market has passed them by. In the real estate business, this is known as “buying the listing”…Unfortunately, it works against a Seller’s desire for an efficient sale at the best price.
We have all seen the results of overpricing. Buyers dismiss the listing and don’t engage in the negotiation conversation. Then the listing sits, gets stale and stigmatizes as buyers begin to think “there must be something wrong with it or it would have sold by now.” This strategy works against Sellers and typically results in lost time and a diminished sales price as compared to what the property would have sold for if priced right when initially put on the market.
If you are thinking of selling, take advantage of my ability to correctly price your home. Call me for a no obligation evaluation. I’m David Kirchhoff, txt for a call appointment to discuss goals, email or leave a message…415.531.2656