10% of the pyramid representing a home priced 15% above market value. This 10% represents the portion of the available buyer pool that will see the value in your home. If you price it right "at" market value, this number increases to 60% of the buyer pool being interested. Finally, if you were to price your home 15% under market value, research shows that 90% of the buyer pool will see the value in your home and will schedule a an appointment to see it. Clients ask me all the time if it's possible to price a home too low, and the answer is a resounding no. If your home is underpriced, you will likely have dozens of interested buyer, resulting in exactly the competitive environment we are setting out to create, and they will subsequently bid it up to what it's worth, and usually higher! In 2021 I had a client refuse to price her home with my recommendations in mind, and insisted that we start at an asking price nearly $50,000 higher than what the CMA determined was "fair". She received zero showings for two weeks, wasting an extremely critical window of time a newly listed home has to gain the exposure it needs. Sadly, a month later she still refused to price it within a reasonable range of the market's fair value. In the end, her net yield suffered as the property sat, without offers for nearly 6 months. During this time the listing became stale in the minds of buyers, and they began to wonder what was wrong with it because it hadn't sold. In the end it did sell, but did so for significantly under market value, to a buyer that inspected it closely, and who harped on the deficiencies. This resulted in the owner having to make concessions she ordinarily would not have needed to. It was a perfect storm. Now, let's look at the other side of this scenario when done properly, also in 2021. This time the sellers took my advice and priced their home competitively, arguably about 12% below market value, at $569,999. I focused on marketing all of the attributes the home had, and spent a great deal of time building value based upon a competitive price. (An important side note:
85
Powered by FlippingBook