If it sells too quickly it was UNDER-PRICED to begin with! Pricing your home to sell!
This is what my seller said to me yesterday when discussing his price point. I said "Excuse me?" & he repeated it, nodding his head up and down. I quickly thought of my most logical response to this myth & said "What do you feel is a reasonble amount of time on the market before it sells?" "Well, I don't know" he said "but under 10 day's is too short!"
I quickly went into the process of selecting a price.
First, I talked about our competition, our competition that let's us know where we stand in the grand scheme of things & determines our absorption rate. The absorption rate tells us what has sold on the market, how many homes are currently available & how long it should take to sell this home.
Second, I talked about pricing it right from the beginning & used them as an example. Everytime we went out looking when they bought from me, if a home had been on the market for a considerable amount of time their first question to me was "What's wrong with this home?". Most times I pulled up the history on it & sure enough they had it priced too high from the get go, gradually moving it down inch by inch to a more reasonable price.
Third, is our list to sold price percentage which helps us determine where homes were when they went on the market vs. how much they sold for. Clearly this tells us how realistic folks are being from the get go on their homes.
Fourth, what is the price range for our neighborhood & what price range is getting showings more than others? I pull a report from our Centralized Showing Service that shows us what homes are getting the most amount of action based on a certain criteria. When it comes right down to it, $5,000 can make a big difference and you want all the action you can get, right?
I am not in the business of putting an overpriced home on the market & letting it sit there for 6, 9, 12 or 24 months, not my style. I like to come to an agreement on the price point of the home based on the above criteria & let is sell. That's our goal, right? In my opinion if a home sells in one, two, three or even 14 days, it was priced right from the beginning.
Pricing it right from the beginning isn't hard to do.
There are a variety of things that can come into play when determining the price of a home but when it comes right down to it there are only a few that matter when it comes to getting it sold, in my opinion. Location and price.
You can't change the location, but you can make your price very attractive without "giving it away".