Local weatherman, er... realtor, George Lindsay Young has his newest market update on the web. This is the same guy who called you a "Chicken Little" (see my post on 9/14/2006). Sounds like he is changing his tune:
The Perils of Pricing High
We hear it all the time! In an effort to get top dollar for their home, many sellers will tell us, "My initial listing price isn't that important because the price can always be adjusted down later."
While this may make sense on the surface, a closer look reveals the potential perils of starting out with a listing price that's too high when putting a home on the market.
To unravel the myth that the initial listing price isn't important, we must first take a look at the primary factors that bring buyers and sellers together. While marketing can be vital in attracting unrepresented buyers, the vast majority of buyers are working with and talking to a real estate agent. A professional REALTOR® knows the current inventory and market conditions for any given area. If your home is first offered for sale and is priced too high, those agents are going to show similar homes that are priced more attractively. Your home will be passed over.
Real estate buyers and REALTORS® also tend to pay the most attention to homes that are new to the market. It's been said you only have one chance to make a first impression, and it's no different when selling your home. Very often, REALTORS® and buyers wait with baited breath to see what's new on the market. Enter the market priced too high, and many buyers will simply write off your home as "the home that was overpriced." A price reduction later in the marketing cycle can leave your home overlooked as new and more aggressively priced homes hit the market.
You may be thinking, "Don't the buyers understand that I'm willing to negotiate?" The truth is, many buyers aren't thinking about that. They are comparing your home with similar other homes offered for sale, and will often write an offer for someone else's home with a more realistic asking price.
The other danger of pricing a new listing too high is once you've realized your error, it may be too late to get top dollar. As more time goes by, if you're moving out of area or simply have to sell quickly you may forced to take a much lower offer because you're simply out of time.
Here at Scott Rivera Real Estate Team, when we meet with you to discuss selling your home we take a different approach. Well before we sit down with you to make recommendations regarding the sales price of your home, we roll up our sleeves and do our homework. We make a detailed analysis of market conditions in your neighborhood, and work with you to develop a pricing and marketing strategy that is custom tailored to your home and your needs. That, blended with our aggressive and comprehensive market plan, can often be the best recipe for success to help you sell your home quickly and for the best price possible
Tuesday, October 03, 2006
Posted by Bakersfield Bubble at 5:26 PM