Pricing A House To Sell – Or Not
If you’re a homeowner and thinking about selling, you need to hear this. When I talk with clients about how to obtain the highest and best price for their homes, they rarely choose the process that works fastest and produces the result they desire.
The standard process of pricing the home on the high-side, then testing the market, is almost always the preferred sales process. With the mind-set of , “we can always lower the price”, we show the house occasionally, wait a certain amount of time, reduce the price, and repeat until we get an offer to work with – or not. Sometimes, sellers are unrealistic about pricing, and offers never come.
Potential sellers need to consider this: if you price the house lower, and generate showings and inquiries, offers will come. The offers can then be reviewed, rejected, accepted or negotiated. Did you know that home sellers don’t need to accept any offer? Even if the offer equals the amount you are advertised for?
In my opinion, the lesser used process is rejected because many home sellers need time to set their minds to selling. They want to sell, but, they also need time to make plans for a move. Basically, they need to get their minds around the fact that this is really happening. What kind of home seller would you be?
Politics Sheriff of NK
10:13 am on Thursday, February 14, 2013
Did you know that if homes were all priced too low, realtors such as Mr Oltedale would make out BETTER because more houses would move, and quicker. Buyers would do well too of course. But YOU the seller leave money on the table. His obvious advice is correct, dont overprice, but also watch for the "high performing" realtor trying to underprice your largest asset to increase their volume. They are out there. YOU can look at comparables in your neighborhood, recent sales, and get multiple proposals from multiple realtors.
Mark Oltedale
3:42 pm on Thursday, February 14, 2013
I can't, and would not speak about the practices of other real estate practitioners. Personally, I only recommend market value pricing to my clients. They deserve to get what the market will bare and buyers should expect to pay what a property is worth.
NK Parent
10:34 am on Thursday, February 14, 2013
Anyone selling a house knows it's a constant struggle between the homeowner wanting more money and the Realtor trying to convince them to accept a lower price. In today's housing market (and the last 4-5 years) I would say the Realtors are usually more accurate. Still, all of PSoNKs advice is sound.
I have a friend trying to sell a home in the Midwest who didn't listen to a variety of Realtors and has chased his home's price downward over the last three years. He still hasn't sold and he's currently listed for an asking price $50k below two offers he turned down 2-3 years ago.
Mark Oltedale
3:53 pm on Thursday, February 14, 2013
In a declining market, like the one described here; encouraging the seller to sell and stop their sliding value would be a wise discussion. It also sounds like the seller has a desire to sell for more than the house is worth, or, they owe more than the market will bare for the house and they are hoping a buyer comes along with cash and won't want an appraisal - not a likely situation.
Politics Sheriff of NK
11:26 pm on Thursday, February 14, 2013
There is another part just as important as price, and thats marketing strategy. Most of the realtors and agents will deliver the basics, basic ad, listing and a couple open houses with balloons etc. I witnessed a house go through 4 realtors and drop the price all along. The last (and successful) realtor did lower the price a bit more, but also marketed the home to OUT OF STATE and found buyers (quickly) who were professionals relocating to RI. Another client of this realtor benefited similarly. So, while truly adept marketers are few and far behind, when you do find one it can really move the property for you. I've met the gamut of realtors, a couple outright dishonest, a bunch just lackluster, and two gems. One is creative at marketing and has great closing skills and I recommend for selling agency, the other is my preferred buyer agent as this one is available, honest, and diligent. Johnny on the spot. As to the rest, if you think I'm a number to you, do us both a favor, and lose it. This is an area where the right professional is key. Now, if you want to take the hit and "sell a dollar for ninety cents" than anyone will do.
Sara Sullivan
3:55 pm on Thursday, February 28, 2013
Let's not forget too, the longer a house sits on the market, the more leverage potential buyers have when putting an offer on that home. Finding a fair market value in the beginning is KEY!