The success story for this condo contains a valuable lesson about pricing. When the seller first contacted Emily to sell her condo, Emily came armed with all the data and statistics for comparable sales in the area. Emily presented the seller with the list price that she was confident that the market supported. However, sellers don’t always want to list at this price, and they will employ a strategy we like to call “aspirational pricing.” We describe this as pricing the home higher than the data suggests in the hopes that someone will pay more than what the market says it should be worth. This will inevitably always lead to longer days on market.
At the Carpenter Kessel Team, we pride ourselves on our data-driven approach. Due to the nature of internet marketing and our intimate knowledge of what all those behind-the-scenes insights and analytics mean, we are able to demonstrate exactly what is going on with a listing and what that data says about the property. As expected, once listed, the data supported Emily’s suggestion that the seller’s initial pricing was not in line with the market.
Once the seller finally reduced the list price to the original suggested price, the home was under contract in less than two weeks! We understand that sellers want to try to get the most out of their home, and though pricing above market value seems like a good way to do this, it is actually counterintuitive. As overpriced homes sit on the market, any potential profit starts to diminish. As carrying costs mount, there is an even more problematic scenario happening in the background: buyers wondering why something hasn’t sold. This can be dangerous, as buyers form an opinion about your property (without having seen it in person) simply based on the fact that it is still on the market – leading them to believe there must be something wrong with the home.
If you are considering selling your home, make sure you know the data and use it correctly to determine the right price for your home based on your goals. Everyone at the Carpenter Kessel Team is an expert at accurate pricing and data analysis. Contact our team today for a FREE Personalized Real Estate Strategy Session!