By Kip Reynolds
In January, I had the opportunity to list a condo unit and in less than 48 hours the seller entered into an acceptable contract. The formula for such success is fairly straightforward. In this case, the seller was willing to replace carpeting and other finishing touches, but the key was pricing it right. With this in mind, I was inspired to share some commonly accepted pricing myths.
- “I’m willing to wait long enough and hold out for a good offer. It will come!” I can’t tell you how often I’ve heard this from sellers. The opposite of this statement is actually true. The longer your property stays on the market the worse the offers get or none at all. As a property sits, buyers start to wonder what’s wrong with it. Why has it taken so long to sell? Buyers spend months looking through listings and they can see yours the entire time. Your goal is 30 days or less for the best possible result, but 48 hours isn’t so bad either.
- “We got that offer so fast! We must have priced it too low.” This is 100% false and one of the more common pricing myths among sellers. The instant your home is listed hundreds or even thousands of shoppers could skim by your listing as they filter through all the possibilities. Priced right and it’s likely many will be interested immediately. Obviously you don’t want to price your home lower than it is worth, but you do want to price it low enough to get buyers excited.
- “My agent came by and took pictures with their new iPhone! Looks great!” Drop the mic and leave the room. A stunningly terrible and complete disservice to any seller. Marketing is the lifeblood of real estate. Professional photography is the linchpin of real estate sales. Light, composition, staging, and even weather all align with the right professional photographer to bring you the tools necessary to attract buyers and achieve the price it deserves.
- “We need to price our home with more room to negotiate.” Another central tool of the realtor toolbox is negotiation and there’s no denying it. A good agent knows how to strike a balance between room for negotiation and good pricing. Pricing a home excessively high is not necessary to create an opportunity for middle ground.
I hope this letter has been some help and you have learned a bit because pricing real estate properly is both a skill and an art. Price is the most important consideration for getting a home sold. If you get the price wrong nothing else you or your agent does will matter. In fact, setting the right price is 75% of the marketing of your home. The correct price will attract the right buyers, so when you’re ready give your trusted realtor a call and let’s get from FOR SALE to SOLD!