The Price is Right game

Pricing your home correctly to sell is absolutely imperative, especially in this market.  Many homeowners may be disappointed to hear what there house should go on to the market for, particularly if they bought just a few years ago during the boom.  But finding the right price at the start will save you money and time overall. 

Take the Hyde Park/Oakley market, homes on the market that sold in the first 30 days sold, on average for 96% of list price.  While homes on the market over 120 days sold for 93% of list price.  So not only did you get less for your house but you also had the carry costs of an additional 4+ months.  In Florence, the numbers are even worse.  Homes on less than 30 days sold for 97% of list, homes over 90 days sold for 93%.  (This doesn’t even take into account all the price drops along the way- opening price to sale price is even more dramatic!)

What this means for you is simple:  Make sure you agent knows your market and justifies their suggested price and then take their recommendation seriously.  Be realistic about the condition, location and amenities of your home.  If condition is your biggest hurdle you might think about having your home staged.  For a small fee a homestager  can come out and make simple suggestions to help your house look its best. 

If you are worried about starting a too low a price- don’t be.  If for some reason your price is low, your biggest problem will probably be multiple offers, which can help drive that price back up.  Feeling particularly stubborn?  Then I suggest a tiered pricing strategy.  You get 2 weeks at your ideal price and then we start reducing the price, every few weeks until we see results. 

In the end there is no advantage to having your house on the market at too high a price, it will sit, and as the statistics above suggest, the longer it sits the lower your final price might be.  So play the pricing game and get it right.

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2 thoughts on “The Price is Right game

  1. sarafoltz says:

    I think this linked blog did an excellent job of highlighting my point on pricing. The MLS stats are far too vague for a comprehensive comparision, and when you are thinking about putting your house on the market you will want to look at OP v. LP v. SP. No matter which statistics you look at though, you get the idea- pricing it right to begin with is vital to success!

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