“Let’s start high and then we’ll drop the price.” That statement is the kiss of death for any new listing. Here are some basic concepts to understand why pricing is crucial when selling your home:
The real estate market is ever changing. When I go on listing appointments, I provide a Comparative Market Analysis, CMA for short. I collect data on the subject home, such as the amount of bedrooms, bathrooms, and square footage, the location, the style home, acreage, and any other features that stand out. My goal is to not go back farther than 6 months. This truely reflects what is current and accurate for our market. Once reviewing what has sold and expired, I account for any feature that may add a higher value and were not available on the other homes. You may ask why I review expired properties… if they expired, why? It may have been the price. Why do we not use active listings in our CMA? Because they have not received any money for their home. Their price could be off by thousands for all we know, and if it is, we will end up in the same situation as them. You can list your home for a million dollars, it doesn’t mean it will sell. (Being that my only compensation is commission, I would LOVE if it sold, but we have to be realistic.)
Let’s say you went to Bed Bath and Beyond for a coffee maker. You found four that had all the same features and were all attractive. Three of them cost $75 and one of them cost $200. They look the same, are the same size, and all do the same job. Which one would you choose? I know I wouldn’t pay $125 more for the same exact item. Now apply that concept to your home. If your home offers the same features, square footage, bedrooms, and baths, why would it sell substantially higher than the others on the market? If there are other homes on the market for less that offer the same as your home, they will most likely sell before yours. Your listing will unfortunately become stale and make buyers wonder if there’s something defective about it. As the market changes and possibly declines, you will continue to drop the price and may end up lower than where you should have been listed to begin. All the while, your home has sat on the market for longer than it had to. Hence my “kiss of death” comment. Price correctly and you will sell, simple.
If you are interested in sitting down for a consultation, please call or email me:
610-823-1309 or firstname.lastname@example.org