As we’re entering the busy season for real estate, there’s a lot of new listings coming on the market. Pricing tends to be one of the components that’s important for a successful sale and we spend a lot of time having conversations with the sellers about it. There’s three pricing strategies that I always talk about with my sellers. There’s pricing it high and hoping that somebody negotiates so you are leaving room for negotiation. There’s pricing it right, which is what’s the house going to sell for in today’s market. Then there’s pricing it low and hoping that you’re going to get competitive offers to bid up the end sales price.
Even though inventory is low right now in the Conejo Valley and in many of the surrounding areas, our suggestion is not to go pricing it high. Buyers are pretty savvy and you’re not going to get the buyers in the front door for showings.
Our recommendation and our track record has shown you have to price it right for the market. Take a look at what has sold recently and what is available. Take into account any upgrades in the home, the neighborhood, the yard size. I’m very analytical, which most of you know; I have a good sense of the market on pricing and it’s pretty important to price it right in order to create the demand for the buyers. Enough demand for the home and the buyers will actually bid it up when they submit offers to purchase the home.
Let’s just say you have a price in mind. You are thinking, “I would love to get X,” and we price it at that number. What we’ve seen is oftentimes by pricing it right and creating that marketing momentum and that demand, we will actually get you higher than X. Pricing it right can actually get you above your dream price. It’s working out that the buyers are that excited about the property, that they actually come in and they bid it even higher than you actually have thought about because they so want the house.
It’s really important that you really work with somebody who understands the market. As a seller, you are most likely watching the market. Sellers today are super savvy. So are buyers. They know what things are worth. But they’re willing to overpay because they’ve got the emotional buy-in to the house. In fact, when you look at our track record compared to the average agent in Conejo Valley, the average agent in Conejo Valley sells at a 96.9% to original list price. We’re selling it at 99.5% to that list price. Some are selling way above and some are selling a little bit below, 99.5% to original list price means we know what we are doing and we’re selling homes, ob average, in 46 days. There are plenty that we sell in under 5 days. Overall, we are selling homes much quicker than the average agent in the Conejo Valley, selling it at 78 days. What you’re seeing is agents are having to take price drops so it’s taking a little bit longer. At Lydia Gable Realty Group, we are pricing home right to get them sold. We are creating the momentum. It’s really important. Our expertise may yield you that dream price of for your home.
Another thing; there’s always going to be an agent out there who’s willing to list it at the high price that you have in mind. Is that really what you want? Do you want to just have your house sit on the market? Do you want to just list your house? Or do you want to sell it? There’s always going to be the agent who just wants the listing, who wants to put their sign in the yard, who might not be as experienced, who might just want to do what you want them to do. Is that really what you want? Or do you want somebody to really sell your home? I hope this is helpful. Talk to you soon!