This post will pull the curtain back on a few things that sellers need to know in a competitive selling environment.
There is a single reason that some homes fly off the market and it’s the same reason some sit on the market for months and months and months. (Not always your carpet’s fault)
It’s the SAME reason entire businesses fail. (Not always fraud)
It’s the SAME reason you buy one brand toothpaste at the grocery store. (Not always because your breath stinks)
Before we go on, let me explain something: Marketing matters. We spend loads of money on seller ads, placing listings in front of buyers that are in the market, and following up to make sure that anyone who is interested in a house you’re selling can find it quickly and get the info they need. But marketing is like sit ups. They are good and important, but if you’re eating pizza every night you’re not going to lose weight. (Even if you do a lot of sit ups) Your food makes the big difference in weight loss and your price makes the big difference in sales. (And if you’re selling your home – YOU are in sales too)
Let’s imagine if we can, you have $10. And you go to a store with two items that each cost $10. You can pick either item. One item is a Ticonderoga #2 pencil. The other is a new Mercedes-Benz E-Class. Both are $10, so which one do you choose?
You would be crazy not to take the car for the same amount of money! Plus, nobody pays $10 for a pencil. The market just doesn’t see the value there. Now this is obviously a very extreme example but buyers instinctively do this when they are:
1. Choosing houses to look at
2. Looking at houses and forming opinions
3. Picking the home they will invest in.
If you want your house to sell, do all you can do to clean it and make it presentable, list it with a seasoned pro with a great marketing and follow-up strategy and then price it where the market says it will sell. No showings? You’re trying to sell a $10 pencil (way high). A few showings but no offers? Your price is probably just a little high. Lots of showings but no offers? You’re probably priced well but it’s not impressing them when they walk in. Get some neutral paint up, take half of your stuff to storage, and keep it perfectly clean. You’ll have a sold sign in no time!
Big Takeaway: Price is critical when you’re looking to sell in an ultra-competitive marketplace like real estate. Do all you can do, hire a great agent, and price to sell.