My Grandfather watches the Price is Right all the time. It's been one of his favorite shows for as long as I can remember and I had to endure it many times as a child. There was one particular game that was played by contestants that comes to mind when I think about real estate. Remember the game where there was a row of products and the contestant had to pick the right price for each product and if they got it wrong they lost?
Well guess what, that says a lot about pricing a home for sale. You have to pick the right price if you want it to sell. Otherwise, you get to hear that incredibly annoying buzzer and the sigh of the crowd that lets you know you just lost. That buzzer represents your home for sale expiring from the market.
If you don't price your home right, then there is little to no chance that the home will sell. Especially this day and age. Other sellers have learned how to be realistic and more importantly, they are not playing games. They are attempting to sell a house. So if you want your house to sell, I strongly suggest that you think long and hard about the Price is Right and how many people walked away disappointed because they didn't get it right.
As always, pricing a home for sale is something of a guessing game. But you can be prepared by taking a look at comparable homes that have already sold in the area. Based on those homes that have actually sold, you can come up with a realistic price that will give you the best opportunity to avoid the sound of a sighing crowd and a blaring buzzer as you walk away empty handed.
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JL Boney, III - Columbia, SC Realtor - Russell and Jeffcoat Realtors
I specialize in Columbia, SC real estate and the surrounding areas, including Blythewood, SC, Kershaw County, Fairfield County, and Lexington, SC. If you are in the market to buy or sell a home in Columbia, SC or any of the surrounding areas, I would love the opportunity to speak with to see how I can help. Thanks for reading and feel free to contact me if I can be of service to you.
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And if they don't heed your advice...they most certainly will be in dire straights down the line.
JL - Lets assume it's a clean property. Price will be the number 1 reason the property will be considered by this new crowd of buyers. I have been ringing this bell like you, in this post. (which by the way is excelllent)
That buzzer could ring a couple of times...signaling each properly priced home in your neighborhood selling, while your lingers on the market. Great advice!
Wrote a great comment. Went up to flag the post and it all disappeared. Drat. At any rate, the banks know what the property is worth, so if you are shorting it, do not overprice it to see if you get "takers". If you are not shorting it, do not overprice it to the market or you won't get showings anyway. And, it will have to appraise at some point. If it is soon to be a bank-owned, try to work with the bank, if you can, to get them the most money they can out of the property. You will benefit from it later.
JL: The tendency to overprice is still alive in our market. And it's a shame that they are listing agents that will do anything for the listing and reinforce an over-inflated price. Glad you are the type of guy that calls it as they see it.
Price is everything. Most will pick every property apart so when they get to price they can back up what they are offereing. Overpricing just does not get you anywhere in today's market. Now if we can just educate the public to the overpricing blunders and the sitting on the fence waiting for the next better deal.
JL
Great post and right on target.
Good luck and success.
Lou Ludwig
I like the way you think. That was great analogy.
JL,
You've given me an idea. I'm going to hook my prospective buyer up to a shock machine with a buzzer; when he picks the wrong price I buzz him until he gets it right.
JL - Loved it...absolutely loved it. Pricing is EVERYTHING. But, it is an art and not a science.
JL, as I try to explain to my clients when appropriate "Your treasured memories will not incease the equity in your home."
JL- You are so right! There are some agents within my market that appear to be playing the mountain climber game. They want to see just how high they can list a home without completely falling off the market. Do you think that yoddling music plays in the background as the agent says their price? By the way, I grew up playing along at home! Love the analogy!