PRECISE PRICING HAS BEEN ESSENTIAL SINCE RATES BEGAN CLIMBING IN 2022, BUT WITH THE MARKET SLOWING FURTHER AMID THE RECENT SHARP RISE IN RATES, IT IS MORE CRITICAL THAN EVER.
ACCURATE PRICING IS CRITICAL
THE DATA IS CLEAR: OVERPRICING CAN COST SELLERS MONEY, PROLONG THEIR TIME ON THE MARKET, OR LEAVE THEM WITHOUT A BUYER ALTOGETHER.
Walk into almost any retail store in the weeks, and often months, before Halloween, and you will find aisles filled with costumes, decorations, and bags of every candy imaginable. The goal is to sell as much merchandise as possible in a limited window. Imagine a store pushing prices higher than its competitors. They risk losing valuable price-conscious consumers who shop around and ultimately purchase elsewhere. As Halloween approaches, they must lower prices to move more product. If they wait too long and November 1 arrives, they slash prices at a deep discount. Had they priced correctly from the start, the store could have sold more at a much higher price.
Similarly, overpricing a home in today’s market does not mean the seller will get more. In fact, it often leads to selling for substantially less or pulling a home off the market altogether. The most important factor in securing success today is accurate, precise pricing.
A seller only gets one shot at a first impression. Buyers wait on the sidelines for the next home that matches their criteria to hit the market. They anxiously check their favorite real estate app morning, noon, and night. When a home suddenly appears with the “New Listing” badge, buyers eagerly review every photo, the virtual tour, all the text, and, of course, the asking price. Today’s buyers are savvy, and they know what homes cost. Even a turnkey home with all the bells and whistles will turn buyers away if the price is too high. They don’t want to waste time and often choose not to tour the home in person.
Accurate pricing is powerful. The difference between selling and languishing on the market all boils down to deliberate, meticulous pricing. Yet far too many sellers learn the hard way that listing too high initially requires adjusting the asking price to secure a buyer willing to write a purchase offer. Sellers mistakenly believe buyers get excited when the price is lowered. The lowered price will show up in buyers’ apps with the “Price Reduced” badge. Yet it won’t generate the same excitement as when it first hit the market, underscoring the importance of pricing right from the start.
Joy Lee
949.290.4903
joy@heyjoylee.com
DRE# 02102122