Pricing Your Home To SELL

Today I want to talk about the absolute importance of pricing your home to sell. As the market shifts, you need to be equipped with the knowledge on how to land at the right price to get it sold while maximizing your net revenue.

There are several reasons you do not want to start too high.

• If a home sits on the market for more than two weeks, buyers will begin to think something is wrong.

• You could set yourself up for receiving bids much lower than the list price.

• Few to zero showings. You've done all the work getting your home ready for photos. The sign goes up, your agent texts that the listing just went live, you're super excited, and nothing happens. And yet another day goes by, no showings.

• This wasn't always the case but considering "average days on market" dropped to an all-time low the past two years, we are seeing those numbers creep up. In August 2021, the 7-day average was 26 days on the market before closing. So far, in August 2022, that number has bumped to 51 days on the market before closing.

Here is a number that is the real eye-opener; what percentage of homes have had a price reduction? As you can see from this chart, in August 2021, just 28.38% of homes reduced their price.

But take a look at the most recent stats as of August 2022. That percentage has jumped to 47.69%.

Sellers haven't entirely adjusted to the fact that the market has shifted, and now you can't slap a high price on a home just because there are desperate buyers. The reality is that buyers have hit a threshold, they have limits, and with the increase in interest rates, some have lost buying power.

The first step is to have a licensed agent perform a detailed Comparative Market Analysis on your property. A good CMA will compare similar homes and adjust for updates, features, views, lot size, and many other factors. From there, an experienced agent will know how to work with the price based on current market trends. This is why I pay for Altos reports so I can watch the market in real-time to help my clients determine market trends now versus a month ago. I want to know what our competition will look like when we list. Let's face it, the market is changing weekly, and as professionals, we need to stay on top of it to help you.

I can do a free valuation report for you home with no obligation! Simply send a message to joannc@remax.net.