No matter how good your planning, exposure, or timing is in the housing market. all of that means nothing if you get this one thing wrong.
The market is shifting. It’s still very much a seller’s market, but we’ve passed the point where you can put up a sign, slap it on the MLS, and expect it to get multiple offers.
Now is the time that sellers have to get back to basics and the first step is making sure that your home is priced correctly to sell. Getting the list price wrong is the #1 mistake and usually ends up costing the seller thousands of dollars and months of wasted time.
The most common reason for sellers wanting to list high is because it makes them feel as if there’s more room to negotiate. I can understand the thought process, but it’s ultimately a pricing strategy that’s rooted in fear. It’s a worst case scenario or a reactive selling strategy.
The reality is that buyers have several resources today and will instantly recognize if your home is overpriced even before stepping a foot onto your property. The last thing you want is for your home to sit and lose any potential momentum that you could have had.
Instead, there needs to be a shift in mindset where sellers have to differentiate the list price from selling price – they are two different things. The list price is merely a strategy to get to your highest and best offer.
The key is to create an auction scenario where buyers compete and pricing your home just under fair market value can manage that. The idea is to bait and hook as many buyers into looking at your home through online views, scheduled showings, and open houses. Essentially, creating a vacuum where buyers looking in your neighborhood are naturally going to funnel into your listing.
More activity leads to more offers and more offers means that you have leverage in the transaction to control the negotiating table – i.e. the bidding war.
I hope you found this video to be helpful. If you have questions about buying, selling or investing in real estate, please make sure to reach out.