ACCURATE PRICING IS CRUCIAL
AS SELLERS ENCOUNTER THE SLOWEST SPRING MARKET SINCE THE COVID LOCKDOWN IN 2020, CAREFUL, DELIBERATE PRICING IS ESSENTIAL TO SECURE SUCCESS.
REDUCE AND NET LESS
Imprecise pricing results in longer market times, price reductions, and walking away with a smaller net proceeds check.
Time for spring cleaning and garage sales. Many homeowners participating in the neighborhood garage sale quickly realize the importance of careful, meticulous pricing. Most buyer activity occurs the moment items are strategically placed on the driveway. After the first hour or two, the crowds diminish and sellers are left scratching their heads and second-guessing their pricing. After adjusting the price lower, they know that the longer they wait, the fewer shoppers arrive, and the higher the probability they will not be able to move their used merchandise.
Today’s sellers are also realizing the importance of careful, meticulous pricing. It does not feel like a typical Spring Market. There is much more seller competition, the market is slowing weekly, and sellers are left second-guessing their price. They realize that the spring clock is ticking. The longer sellers are on the market, the fewer buyer showings, and the more doubt sets in.
Precise pricing is crucial in securing success, especially this year. It sets the stage for immediate buyer interest and is the most critical first impression before a buyer even sets foot in a home. Today’s buyers are educated and understand value after immersing themselves in the housing market for several weeks. They utilize their favorite real estate app and wait for the next home to hit the market. They look at every photo and soak in all the details: bedrooms, bathrooms, square footage, condition, upgrades, location, lot size, amenities, year built, garages, storage, view, etc. The price is most important. It is the differentiator between a buyer choosing to see the home in person or waiting for the next home to hit the market.
After the initial 10 days of coming on the market, most seasoned buyers have seen a home. Even if they decide not to tour the house in person, they feel as if they have at least completed a “phone tour” and are ready to move on to the next one. The longer a home is exposed to the market, the less activity it receives. Many sellers mistakenly expect a giant boost in showing activity after adjusting the asking price lower. When a seller reduces the asking price, it is not met with eager anticipation and excitement like when it was initially placed on the market. Currently, 33% of all active listings in Orange County have reduced the asking price at least once. Sellers do not get a second chance at the initial first impression.
