Even in a sizzling hot real estate market – like the one we’re in now – some listings languish on the market. The biggest reason these homes don’t move is that that they are overpriced. Even in a hot market, most buyers won’t touch overpriced listings with a 10-foot pole. This can be confusing for potential home sellers. Often, these sellers think they have to start high so there is room for negotiation. Yet in our current market environment, it’s the well-priced listings that are selling at list price – or above.
Why is that?
Just like home sellers, buyers also study the market and pricing. They are also looking at a number of homes online or in person. So if a home is priced well above its competition, it may not even fall within the search parameters of buyers who are looking for homes in a certain area or price range. Furthermore, when buyers are working with a Realtor, that Realtor typically isn’t going to show them homes well above their desired price range.
If they do happen upon an overpriced listing, serious buyers usually don’t want to waste their time on it. Why? They may believe that the seller isn’t really motivated. The only buyers likely to make offers are investors, and even those will usually come after the home has been on the market for quite a while. Everyone’s motivation is different, but most home sellers list their homes to sell. To accomplish that goal, it’s best to do everything right from day one. That includes getting the home in show-ready condition, working with the right agent, and pricing the home right.
How Do I Make Sure My Listing Isn’t Overpriced?
The best way to avoid becoming an overpriced listing is to work with a professional real estate agent. A knowledgeable, experienced agent will understand what the market is doing and will have their eye on home prices at all times. They understand that pricing to the extremes rarely works, if ever. An agent should help you come up with a nice round number that will entice people, but also leaves room for multiple offers and room to grow in price.
If you’re thinking about selling your home, you should talk to an agent now. They can help you determine what your home is worth so you can make an informed decision about selling. Even if you decide not to sell, this is great information to have. Most agents – like The Shannon Jones Team – will offer complimentary appointments for you to gather more information. There are no strings attached but it can help you understand your options. If you do decide to sell, you and your agent can come up with a listing price together so you’re both comfortable with the number.
Hear Shannon talk more about pricing strategies in the video below.
Long Beach is currently in a strong seller’s market, but that doesn’t mean any less strategy is involved in pricing a home. This is especially true if you want to sell your home for top dollar. We’ve included even more resources on pricing strategies below.
More Resources on How to Price a Home
- Pricing Advice In A Seller’s Market
- Here’s What’s Different About 2021 Home Prices
- The Future Of California Home Prices
Make Sure Your Home Doesn’t Become an Overpriced Listing
As a professional, I come across overpriced listings all the time. These homes will either expire or see a major price reduction after a long marketing time. Neither of these situations looks great to the eventual buyer. In fact, it could even mean they offer less money than they would have originally because they think the seller is desperate. This doesn’t have to be the case for you. With the right agent by your side, you can take advantage of our current seller’s market and sell your home at, or above, the asking price.
If you’d like to discuss a pricing strategy for your home, please fill out the form below. Or, if you’d like to get in touch immediately, you can give us a call at 562.896.2456. We look forward to speaking with you!