Pricing to sell
Dear Phyllis,
Before listing my La Crescenta home, I met with two Realtors. The first told me to price my home at $1,295,000 and expect to sell over the asking price. But he really couldn’t pinpoint how much higher, which made me very uncomfortable. The second Realtor suggested I list at $1,495,000 and expected me to sell close to that number. I hired the second real estate agent and listed at $1,495,000. After two weeks, I got an offer for $1,300,000. That buyer wouldn’t come up, and I canceled my listing. I spent countless hours getting my home ready for open houses, and now I feel deeply disappointed. Right now, I am unsure what step I should take next. Frustrated
Dear Frustrated,
Some home sellers are pricing too high because they keep hearing how hot our market is. Although it’s a strong seller’s market, you can still overprice a listing.
In today’s heated seller’s market, it’s difficult for a Realtor to predict at which price your home will sell. So many unknowns come into play. Most offers on my listings come from buyers who have written other offers on other homes and lost the bidding war. Most of these buyers become more aggressive with each offer they make.
In today’s current real estate environment, it is nearly impossible to underprice a listing.
As long as your well-priced home is fully exposed to the market with open houses and a solid marketing plan, buyers will drive up your asking price.
Sadly, you have discovered it’s more important than ever to negotiate your price up and not down. Now is the time for you to regroup. Contact the first real estate agent and have an honest discussion about your concerns. Keep in mind that your listing price of $1,295,000 is an offering. You are under no obligation to accept that offer – even if cash and without any contingencies.
Best of luck the second time around.
