The Price is Right. Or is it?

by jmaranto

In this case, yes.  I recently posted on FB that I was able to sell not only one home but two homes in less than 24 hours. A friend of mine commented that they must have been priced too low and that this timeframe did not allow the seller to take advantage of the opportunity to maximize profit.  “By having these homes on just for one day did not allow the market to dictate the price” Interesting theory, but incorrect.

Using recent market data to compare these homes with other homes in the neighborhood both the sellers and I were able to establish reasonable price points.  The fact that these homes sold as quickly as they did validates that they were priced correctly.  They were the best homes on the market relative to current competition and these prospective buyers knew that and jumped at the opportunity to purchase them.

Having a home sit on the market longer just validates that it is not priced correctly given the competition.  In fact, in both of these neighborhoods other homes are still sitting on the market that are both less and more expensive then the subject properties.  Moreover, I would argue that pricing it higher to build in negotiation downward and letting it sit for the right buyer, only to have it settle where you projected it would sell is a waste of time.  The longer a home sits, the more prospective buyers feel that the seller is desperate and seller’s can lose their negotiation power.

Price it right and move on. Don’t and prepare to be around for a while.

Published on 2015-07-18 06:54:37