The market is challenging right now, but buyers are still buying and sellers are still selling. The sellers I see succeeding have one thing in common: they’re intentional about their strategy, and that starts with price.
How do buyers judge a home’s price?
By comparing it with every other home available to them. Buyers know what homes are priced at in the neighborhoods they’re considering, and many know every property in their preferred price point. They don’t care what a seller wants for the home, what the seller paid, or what the neighbor’s house sold for two years ago. They care how the home stacks up against everything else they could buy right now.
Why do buyers pass on an overpriced home?
When a home is priced above the other homes available, and nothing obvious explains why, buyers don’t make a low offer. They move on to the homes that make more sense. The overpriced home ends up making the competition look like better value.
Will pricing a home correctly leave money on the table?
In my experience, no. When a home is priced right, buyers and the market make up the difference. When it’s priced too high, it sits, and a home that sits starts to raise questions for buyers.
What do I show sellers before we choose a price?
Recent sales are only part of the picture. At every listing appointment, I also show sellers:
- The active competition: the homes a buyer will compare theirs against
- The homes that didn’t sell: listings in their market that were canceled, withdrawn, or terminated
In our market, about 22% of listings typically come off the market without selling. That’s more than one in five sellers who did the prep, lived through the showings, and ended up right where they started. That number tells a story all by itself.
What if a seller needs a certain price?
Then this may not be the right market for them to sell in, and that’s a fair decision. If a seller needs to sell, though, the list price has to be one that gets a buyer’s attention.
What is a listing agent hired to do?
A listing agent isn’t paid to list a home. The job is to sell it. That means helping sellers see their home the way buyers do, next to every other option on the market.
Frequently Asked Questions
Why isn’t my home getting showings?
Most often, it’s priced above similar homes that buyers can choose from, so they choose those instead.
Should I price high and leave room to negotiate?
In this market, pricing above the competition usually means fewer buyers look at the home, so there’s no one to negotiate with.
How many homes come off the market without selling?
In my experience, about 22% of listings in our market are canceled, withdrawn, or terminated without selling.
