Step 5: PRICE IT RIGHT

Pricing Strategy

The best time to sell your home is right away, in the first 1-2 weeks.

The longer a home sits on the market unsold, the “staler” it becomes. Buyers may assume there is something wrong with your home, otherwise it would have already sold.  Buyers feel no urgency to see stale listings.

sm9Conversely, people feel highly motivated to compete for something new, something others want, aka FOMO = Fear of Missing Out.

When we send you a market analysis and you’re deciding what price to start your listing, consider carefully which problem you’d rather have: sitting on your home for months with an increasingly stale listing, or having buyers scramble over each other to submit offers in the first few days, giving you many options to chose from?

What is the Market Telling You?

The most accurate valuation tool is the market itself.  Once your home is listed, you will instantaneously start receiving feedback from the market. You know your home is priced right when you see activity (showings and offers).  sm3

If you’re not seeing much activity, first consider your photos — especially your cover photo, which is the only photo many potential buyers ever see.  If your photos don’t give a good first impression, consider getting professional photos taken.

Listed your Home Too High?

If you listed your home for a higher price than indicated in the report we sent you, and the photos are good, but lack of activity is confirming that your initial price was too high, then consider lowering the price. sm7

When your list price is too high, buyers and buyer agents who are searching in your price bracket are seeing your house alongside superior homes–or, they are searching in a lower price bracket and not seeing your home at all.

How soon should you lower the price?  If your home has been on the market even 1 week with muted response, do it now! Buyers and buyer’s agents with alerts set up for your neighborhood will get a notification within 24 hours with your home at or near the top of the page, flagged with a motivating “Price Reduced” banner.   sm6

If it’s been 2-3 weeks since you lowered your price and still no response, it’s probably time to lower it again.  The longer your home sits on the market unsold, the staler it becomes.  Nobody is going to get any more alerts on your property unless and until you lower the price again.

Lowering multiple times means multiple notifications. We don’t mind updating the price multiple times.  We believe it’s a smart strategy.