Pricing your Los Angeles home to sell is as much art as science.
In May of this year Harb & Co. listed 5821 Buena Vista Terrace for $650,000. More than twenty offers were written and this Highland Park home sold for $837,000 nearly 30% over asking price. We had three open houses and a great marketing plan. We closed escrow on June 21st. Our stats: 2 +2, 1048 square feet on a 7098 square foot lot with a one car garage. This home was a sweet rustic cottage with few updates.
The neighboring home at 6045 Buena Vista Terrace listed in July for $879,000. Their stats: 2 + 2, 1040 square feet on a 7100 square foot lot with a two car garage. This home had an updated kitchen and baths, central air and heat. (Our listing had a wall furnace and wall a/c).
I understand that when pricing this Highland Park home, they assumed it would sell for more than my listing. But the first problem was pricing over the $850,000 price point. As most buyers search for homes on the internet, “round numbers” will show up in their online searches. Most buyers have a specific price range. For example: buyers are looking for a 3 bedroom home priced up to $850,000. When their search criteria cuts off at $850,000 and their dream home comes on the market priced for $879,000 they may not be aware of this listing.
After 17 days on the market, the neighbor’s price was reduced to $859,000 – still missing the $850,000 price point. 13 days later the price dropped to $829,000, less than my $837,000 sale. But by now this home had been on the market for a month, while most homes in the neighborhood were selling in two weeks or less. After 50 days on the market – nearly two months, the price was reduced to $798,000 and sold for $762,500 – more than $100,000 less than the original asking price.