Central Oregon Real Estate

What’s Price Got To Do With It?

Pricing a home correctly - means it will sell faster!

The real estate market is changing - we currently have more inventory that we have had in about 3 years. Because of this change more sellers are competing for the buyers.

Many sellers believe that the original listing price has no impact on the sale of the property - they can always lower the price. That is a myth that hurts a lot of sellers. When a buyer first views your home because of an ad be it in a newspaper, real estate publication on the web or any of the other ways buyers find a home and the price is in their range it may not make a difference they will view the home. However, if you are over priced they will move on to another home that they feel provides more for their hard earned dollars.
Most Buyers come to your home through a real estate broker and not these other forms of advertising that sellers think sell their home. Of course buyers call on ads, even look at the house - but once they talk to an agent they will discover your home is overpriced and you will loose the potential sale, because it does not have what they want, need or the price is too high compared to other properties on the market.The properties that the buyers will look at their agent will know are a good value. Your home could become the home that pushes the buyer into buying your neighbors home.

Very seldom does a buyer buy the home they inquired about. Most of the time the call comes from a buyer the agent provides them everything that matches their search criteria and the current market is discussed. This will weed out a lot of properties and the buyer will only see the properties that meet their needs. In other words your property brings the agent buyers - not always for your home though. Do not despair though… because the same is true for every ad, so when the agent advertises your neighbors property they may actually find a buyer for your home.

The buyer’s agents will not be impressed or swayed by advertising. The broker will look at the client and what the needs are not those of the ad. The clients needs are the broker’s priority including the price.

If you have overpriced your home one of two things will happen. #1 your home will be over looked completely. #2 The broker will show your home, as a comparison of the other properties that are priced correctly. The later makes a sale very easy when you can show the buyer a home for a considerable amount less that fits their needs and then one that is overpriced it makes the buyer feel like they are getting more for their money.

Most agents pay closest attention to the new listings. There are fewer new listings than current listings. Keeping an eye out for what is new compared to all the listings is much easier, plus if a property has not sold most likely it comes down to price.

Most agents can at a click of a button see what is new over the last 24 hours to a week. These listings are often referred to as a hot sheet. Hot Sheets are a common way for agents to know what is new and then they can communicate with their buyers the newest listings.

If the agent focuses on the new listing - and they tell their buyers about the new listings - if your listing is overpriced when and what will they say? My guess is hey there is a new listing that meets most of your criteria however it is over priced, would you like to see it? What would your response be? Obviously the property that is priced correctly is the one that gets the proper attention and an overpriced one is left in the dust.Some sellers think; “But I’m willing to negotiate!”Buyers do not think that much in advance, they think about what they are willing to spend and know an offer is not always full price; but if your home is way out of line; they will feel there is not enough room for negotiation.

Not to mention that when your home is new on the market you will not be as willing to negotiate as you will when it has been on the market for say 90 days or more, without any showings and at that point you realize you have made a mistake or you blame your agent. Remember that static’s show that the first offer is often the best offer that a property will receive.

Want to know what happens if you price your property to high in the beginning and adjust the price later?You have lost all those agents taking your listing seriously at the beginning when it was NEW. A price reduction will often make you look desperate and will bring in even lower offers than if you had priced correctly at first. If your home is priced correctly in the beginning it is not uncommon to have multiple offers. Which can actually bring you a higher than expected price.

As your home sits on the market you will find yourself frustrated because you have not sold and the may have already found the prefect new home and new job - now whose fault is it that your home has not sold yours or your agents?

Lowball offers, will be the result of sitting on the market longer than the homes you were originally competing with.

You are not alone if you started with a high price, many sellers still mistakenly believe they should “price it high” because they can lower the price later, if necessary.

What do you think will happen?