Did you know that, regardless of the market, there are 2 types of list prices?
No question, today's real estate market requires a more aggressive pricing strategy to not only get your home sold, but to get it sold for the best price and in a reasonable period of time.
So Here is the Secret...
No matter what the market, there are 2 types of list prices:
1. There's the average list price of listed properties, and
2. There's average list price of sold properties.
To achieve a sale you first have to attract buyers. You accomplish this by pricing your home - at minimum - within the average list price of sold properties. Then you are at least competing with homes positioned to sell.
If you want to stand out, price your home below the competition!
As a seller, you need to price the home within the average list price of homes sold, NOT the average list price of homes listed.
List to Sell or to Linger?
The average list price of listed properties is where the majority of homes collect. This is the realm of the unmotivated and the market testers. These home prices defy the market and sit there unsold for months and months.
(For example, In the Niagara, ON region where I am, the recent average list price of listed homes hovers around 19% above the average sale price.)
The average list price of sold properties represents sellers who are motivated and serious. They have either priced their house to sell from day one, or have dropped the asking price, sometimes more than once, within a range that will cause the home to sell. They understand the need to align themselves with market conditions for best results.
That's why it's also a tale of two sellers... happy ones and disappointed ones.
Does this blog post hit home? Did it make you feel good that you're one of the "serious sellers" or did it sting because you recognize yourself as in the "realm of the unmotivated" sellers? Let us know in the Comments below.
Eugene Pilato is the broker of record at Century21 Today Realty Ltd. in Fort Erie, ON.