Should You Price Your Home in a Seller’s Market High or Low?
Pricing your home is very important when you’re competing with your surrounding neighbors during a seller’s market. Homeowners should consider that they’re in competition with nearby neighbors selling their property as well. As we finish the first month of the fourth quarter, we’re seeing a very slight change in the market. Needless to say, there’s still high signs of a strong seller’s market. Arthur & I are always asked prior to listing a home, “how should I price my property to achieve market high offers?”. Now, there are many factors that must be kept in mind. We’ve listed a few with brief details to help homeowners understand the variables that may affect their listing.
- Average days on the market (DOM): This is one of the most important pieces of data to pay attention to. When we look at your neighborhood through our free property evaluation comparable analysis report, we’re able to pull every detailed characteristic of sold properties within your area. If houses are flying off the market within 10 days or less, we’re in a strong market. If we’re showing a more prolonged timeframe, not to worry, the market is still in favor of seller’s but is hinting a slowdown.
- Buyer’s Offer: A seller’s markets can often result in bidding wars between buyers. Lately, with the market slowdown, there’s been fewer bids. Needless to say, we’ve gone from 10 offers to 3-5 strongly interested parties. Homeowners should be aware of their neighborhoods analytics and what homes are selling for. This vital piece of information can be compared to their list price and of course the final value. Some neighbors may list low to attract attention and then sell high.
Needless to say, many homeowners are listing and selling their properties for market strong numbers! Listing low is a tactic that may be used to bring attention to the property. Homeowners should be aware that there is a risk of this and should consult a professional with analytical data before making this decision.
Do we recommend this strategy?
There’s nothing wrong with this tactic because through our strategic marketing, we’ll guarantee maximum exposure, and we’ll leave a massive digital footprint. Some of the tactics that Arthur & I use are the following; Facebook ads, video, virtual, drone, and pinpoint buyer targeting. We’ll evaluate your neighbor based on the new the buyers within the neighborhood. Our ads will be specifically targeted to this demographic. That being said, if you rather play it more conservative, we recommend listing the property congruent with the neighborhood’s value.
For information on our evaluation process, marketing tactics, or your homes live market property value analysis report, contact us directly at (408) 703-5375. You can also fill out the form below and we’ll be in contact shortly.