Pricing your home for Top Dollar

Want top dollar when you list your home? Avoid this one common and fatal mistake.

PRICING YOUR HOME

In real estate, it is neither the real estate agent nor the seller that prices a home. Buyers make decisions on how much value they’re prepared to invest into any given property, and these decisions are the foundation of the market – and it is the market prices a home.

IT’S ALL ABOUT THE DATA

When a property sells it creates a fixed data point (sale price). Over time, coupled with driving forces in the market, the aggregations of these salient data points create the market price.

It is critical that we assess these data points in a highly objective manner.  The success of our conclusion is a clear understanding of buyer’s expectations, current market conditions, and the economic picture on both a macro and local scale.

Sotheby’s International Realty has the advantage of an extensive database which goes beyond that available to the public. We are able to rely heavily on our in-house economist who helps us integrate these numbers. Part of the challenge is recognizing that what we as a seller may believe to be of value, may not align with what a prospective buyer may find of value.

Pricing is an integral part of your Marketing Strategy.  It is a complex process requiring us to carefully examine our inherent bias and objectively aggregate the data, to find a price that will maximize the top value for your home.

HOW DOES THE MARKET DRIVE PRICING?

Once the marketing campaign is launched, the market must direct our pricing strategy.

In a balanced market, if our price is spot on, we will receive multiple showings and offer(s) within the first few weeks. When this happens, we know we have priced on point.

If we receive multiple showings and no offers, the market is telling us we need to adjust slightly downward.  ‘The market,’ includes the feedback from potential buyers who previewed your home.  I will always ask for feedback to ensure we are able to dynamically align our pricing strategy.

If we receive very few showings and no offers, we have absolutely missed the mark and must make a highly competitive price improvement.

ASPIRATIONAL PRICING: HOW NOT TO PRICE YOUR HOME

Unfortunately, it is often suggested: “Let’s just try this higher price and maybe we can find the one person (prepared to overpay.)“  This is a failing strategy.. This exceedingly rare longshot results in receiving less than the top price in the ultimate sale for various reasons. These aspirational list prices establish data points attached to the property that live in perpetuity. Buyers are well aware of these numbers and always ask the question “What’s wrong here?” Ultimately the property trends downward, trying to catch the market (much of which has moved on). It’s a slam dunk to achieve less than top price.

Yes, it takes “just that one buyer,” however, with aspirational pricing, that ‘one buyer’ has most often moved on by the time a home is presented at market value.

HOME VALUE: IT IS A team SPort

We love our homes, they represent so much value in our lives. Your home’s value is truly inherent in the life and family your home has embraced over the years.  A harsh reality is this: in the business of selling our home, this deeply felt subjective value is not relative to market value.

The first few weeks are critical – get it right out of the gate, or expect to be chasing the field. You don’t get a second chance to be new to the market.

I am sure you have seen homes for sale for months (and even years), even in good markets.  Most often these homes were initially listed at these aspirational prices, and over time the brokerage hangs in with the seller (and gets lots of advertising opportunities) as they chase the market downward – ultimately selling at less than they would if they had heeded an informed pricing strategy. No one should profit off your dreams, and no Relator representing you should be anything less than capable of interpreting the market, and forthcoming enough to help you engage a pricing strategy that will get you top value.

PRICING IS A TEAM SPORT
The Market Makes the rules we can’t change.
Your real estate agent is your seasoned coach who knows how to win.
You take the shot, so make it your best!

Luxury SERVICE MEANS TOP PRICE

At Sotheby’s International Realty, our goal is to get you top price. You need and deserve to be fully informed. With a global track record of billions of dollars of sales, we understand how important it is to get this pricing right, the first time out.

Sotheby’s International Realty is luxury. Luxury is not just a price point. Luxury is the relationship that always prioritizes your family.  Luxury is found in a relationship that is honest and enduring.  Luxury is a bespoke service, at your service.

Vacation home Blue Mountains.  Indoor Outdoor living.