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, not only get your home sold but to get it sold for best price and in a reasonable 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. This is where homes get lost in the crowd.
2. Then there’s average list price of sold properties. This is where your homes competes and gets a buyer’s serious attention.
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, not the average list price of listed properties. Then you are at least competing with homes positioned to sell.
If you want your home to stand out, price it below the competition. A buyer has to see value, and even with today’s tougher market, homes priced to sell can attract competitive bids. As a Seller, you need to at least price your home within the average list price of homes sold, not the average list price of homes listed.
Consider these Numbers
The average list price of listed properties is where the majority of homes collect—the bottom of the triangle. 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. In the Niagara Region, the recent average list price of listed homes hovers around 19% above the average sale price. In some cities, that percentage is higher.
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.
Consider the following.
At this time, about 32% of homes listed for sale have sold. As well, the average list price of homes sold is only 8% above the average sale price, not 19% as mentioned above. What’s more, the time it took to sell has averaged out at 81 days, or just less than 3 months—a reasonable period of time.
* Source Century 21 News Today Volume 5 Issue 4 2009, Author Eugene Pilato Broker