Real Estate - Home Pricing Strategy
Recently, I’ve written a couple of posts about the dilemma of pricing a home right to get it sold.
How do you price a home right according to existing market conditions? In the “good old days” of 2002 – 2004, it seemed you could price a California home for whatever price you wanted and somebody would show up to buy it or at least bid on it. The market was experiencing phenomenal appreciation as bidding wars pushed prices higher and higher while sellers danced in the streets and buyers walked around either punch drunk or frothed into a frenzy of desperation to lock in a purchase.
In an appreciating market, getting top dollar for your home can be as easy as simply pricing it above market value and letting the market catch up to the price. This can take some patience or no patience depending on how rapid the rate of market appreciation.
But when the market turns, holding onto the “fantasy profits” (appreciation in the mind, not in the bank) can set us on the road to sorrow and frustration, if not ruin. It is the “holding on” to unrealistic hopes, expectations, or fantasy profits that can lead to the slippery slope of chasing the market down.
A good agent who knows the market can help to position price to attract the most attention and set up the dynamics for a quick sell or maximum net depending on the client’s motivation. Sometimes it is not possible to have both. Sometimes a quick sell puts some limitation on net/net. Sometimes lowering the asking price sets the stage for multiple offers that result in bidding the price up.
Whatever the market conditions or circumstances – homes continue to sell. Engaging the services of an experienced Realtor that is neither in la-la-land or trapped in their own narcissitic needs remains a good investment for home sellers wanting to maximize the potential of a real estate transaction.
