In today’s buyer’s market, a sure way to get your listings sold and to avoid ending up with an expired in your hands, you must price your listings right from day one. “Right, that’s easier, said than done”; I bet those were your thoughts after reading my last statement. Well in order to give you a little help, following are 5 tips to price a house right from day one.
1. Play the cards you’re dealt.
A successful poker night begins before you reach the table, when you resolve not to chase after hands that you have no realistic chance of getting. Similarly, a successful home sale begins before the house is listed; let sellers know in this market, they should not expect to make a killing.
Tell them, “all you can do in a falling market (if you have to sell), is have the best possible product out there at the price it should be,” “Not what you wish you could get, not what the neighbor got two years ago, but at the price you should get now. That’s the reality.”
It takes discipline to face that reality and humility too. For many sellers, “the only disappointment is that their friend, six months or a year ago, got more than they’re getting,” ego gets in the way when they’re trying to sell. Or many times stubbornness, I should say.”
2. Take them to scope out other houses for sale.
Break through their ego and stubbornness by looking at the good deals that their neighbors are offering. “It is important to know your competition, what’s on the market right now, at what price, how it really compares to your house.”
Next, put on your shopping shoes and look at everything from a buyer’s viewpoint. “Get out in the car and look at everything you can, Visit some weekend open houses. Just get a feel for what your buyers are looking at.”
Visit newly built houses and find out which amenities and incentives builders are offering. Eavesdrop on other visitors to open houses to find out if there’s something in particular they’re looking for — something you should do to make your listing more presentable.
3. Make it a turnkey, not a turkey.
The word “turnkey” is used in commercial real estate. It means a property is ready for immediate use. Your listing has to be that way when buyers have a cornucopia of houses to choose from. “You have to make it a 100 percent turnkey situation; everything has to be ready to roll, because buyers will never want to buy a house that needs a lot of work unless it’s an absolute bargain. You have to take away all their opportunities to say no.”
Remember that when buyers outnumber sellers, you can get away with selling a house with ratty carpet, smelly furniture and walls that need painting. It’s also helpful to hire a house inspector at the beginning of the listing. “Know now, and fix it.”
4. Offer incentives.
Now it’s time to figure out what goodies you will dangle before buyers and other agents.
Besides a low price, incentives for buyers include seller’s paid closing costs or providing flexibility about the move-in date.
Consider offering a premium to the buyer’s agent. Even splits are making a comeback; the days when listing agents keep a bigger piece of the pie are gone.
5. Price realistically.
It takes research, often presented through a well preparedCMA, to come up with a realistic asking price, and discipline to abide by it. It’s important that sellers, understand the dynamics of pricing enough to build a defensible argument. It’s not enough just to throw out a figure.”
Through several websites buyers can get an accurate idea of today’s houses market value. You and your seller can’t bamboozle buyers because they have so much information about comparable house values.
In a seller’s market, sellers typically ask for 10 percent to 20 percent more than they expect to get, there is not such a thing in a buyer’s market, pricing around 3 percent to 5 percent more than yourCMAwill make your seller’s home more attractive. Setting an aggressive asking price attracts more prospective buyers to your door, discourages lowball offers and saves negotiating time. “You’ll know fairly quickly whether they’re willing to meet you or not.”
In a market where prices are falling, asking prices must fall, too, “which is a whole new concept for sellers right now.” For example, if the Smiths sold their house early this year for $700,000, you might have to ask just $675,000 or may be less.
We as agents have to have tact to break the news, “When we tell our clients this, they think we are the devil.”
Hope these 5 tips help you with the sale of your home.
Beatriz O’Neill,
RE/MAX Meto
646-251-9997
New York Real Estate 