Selling real estate is all about good marketing. Sure, sales skills are important and anyone can sell anything in a hot seller's market, but at the end of the day it takes good marketing to sell a property. The one thing that will derail the slickest marketing is a bad price. Overpricing ensures failure.
Studies have shown that overpricing a property by 20% eliminates nearly 95% of the buyer pool for any particular property. This applies in any market, regardless of the type or price of the property. So, if the price is even higher, nearly everyone you could sell the property to will pass it by in favor of something else. How often is an overpriced property sold to someone stupid enough to pay more than the market rate? You let me know how often you see that. The opinion that a home is worth more than nearby comps, particularly on the part of a seller, is purely subjective. If the recent sales show support for one price, and the agent can back that up with a market analysis, then going over that price guarantees sitting on the market waiting for a buyer.
When I market a property I consider all the angles and create a first-class marketing program with professional photography, videography, flyers, virtual tour, direct mailings, and more. That marketing is designed to instill a level of trust in the quality of the property. If I price that property too high, I damage that trust. In every subsequent price reduction, that trust is further eroded. Do you know why? Because the buyers don't believe the seller has a realistic grasp on the value of the home. They're not sure any offer will be treated fairly and even lowball offers stay away.
My suggestion for sellers is this; price your home right to begin with. Keep it within a few percentage points of the comparative market analysis, and it will sell quickly. Overpricing is simply a way to waste time and ensure a lower final sales price.
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Bryan Robertson, Broker Associate | T: 650.799.9951 | Email: bryan@serenogroup.com | Website: http://www.BryanRobertsonHomes.com |CA License: 01191946 | Sereno Group - Los Altos branch | 369 S. San Antonio Road | Los Altos, CA 94022
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