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 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, 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. You are at least competing with homes positioned to sell. To stand out, price it 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.
Down to the Numbers
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. 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.
Thinking of selling? No matter where you live in the Niagara Region, employ this little known secret. Simply contact us at Century 21.