An intelligent, informed and realistic pricing strategy is the most important criteria for selling your home quickly for its maximum price. If you price your home too high it won’t sell as quick as you wished—and you risk getting an offer far under your asking price. If the price of your home is set too low you run the risk of leaving money on the table.
This critical balancing act must take a number of variables into account, including relevant local housing market information, appraisal values and the goals of the homeowners.
Pricing is important to get right from the beginning, as a mistake in the first week will compound drastically over time. In general, pricing the home correctly in the beginning will allow the Seller to walk away with more money.
Properly price homes sell faster, it’s a fact. In the first few weeks of listing, there are more offers at a higher price—producing more competition, and more money on the table. We urge our clients not to miss out on their prime marketing period by setting a price higher than might be justified by the competitive market evaluation in the area. After 1 month of being listed, there is a -3% difference between asking price and selling price. After 6 months, this difference is compounded to over -15%. On a $500,000 house—this could mean up to $75,000.
Contrary to many people’s belief, pricing your home is not guesswork; nor should an inexperienced homeowner undertake it. It takes a qualified professional, detailed market information and listing/sale data to determine an efficient and attractive price for your home.
In general, your home will be priced to sell within a range of similar homes in your area that are being sold. However, because all homes are unique, your home will be differentiated either higher or lower, depending on its characteristics, quality and condition relative to the other properties. Before pricing commences, the Harris-Johnson Team will conduct a well researched, computerized and written market analysis to help determine the realistic amount that your home will base in today’s market.
Your home has the most activity within the first 30 days on the market. A quarter of homes are sold within the first month. While after 4 months, only 12% are sold. Correct pricing is the most important action that you can take as a homeowner that can contribute to selling your home quickly and for the most money.
In this series on pricing homes, the Harris-Johnson Team will continue to shed light on popular pricing strategies, unearth some common objections, and inform you, the seller, on how you can contribute a successful real estate transaction.
Cancelling a listing agreement is abnormal, and should be avoided when possible. Of course, sometimes exceptions do happen. However, The Harris-Johnson Team’s goal is to take the necessary precautions including the continued education and encouragement of communication between our team and our clients in order to mitigate any potential conflict.
There are two general situations where the listing agreement is cancelled: The first, is at the expiration of a listing agreement—after lets say, 40-60 days; The second other is if the realtor fails to be an active participant in the property sales process.
Expiration of a Listing Agreement:
When a listing contract is signed between one our clients and our team, a specified length of time is always included in the agreement. Over the years, our team members have signed multitudes of different lengths of contracts, which are specific to each client’s goals and current market conditions.
The duration of the listing agreement includes significant strategic insight, which will help place the property in the best market. Long listing agreements can potentially signal to buyers that there is no rush—while short listing agreements could signal a ‘hot mover’. Depending on the client’s wishes, the length of the listing agreement can often be adjusted.
In situations where a market has become stagnant, the Harris-Johnson Team will often cancel the current listing agreement and re-list the property in order to ‘freshen it up’. This is an example of using listing agreements to our client’s advantage.
Occasionally, client may find himself or herself in the situation where they do not see eye-to-eye with their realtor, or agree with the arrangement that has been established between them. The Harris-Johnson Team takes any and all possible action to mitigate this possibility by championing our two most valued principles for our clients; education and communication.
The sales process is often arduous for some, but the Harris-Johnson Team aims to differentiate us by being the best at educating our clients at every step along the way. We focus heavily on being in constant communication, especially with our clients that have properties listed with us so they do not feel out of the loop.
The Harris-Johnson Team champions itself as being as up-front and transparent as humanly possible for our clients. By doing this, our goal is to set up the most open lines of communication between our team and our client’s interests. That is why we always advocate for a full initial meeting with any new client in order to get to know each other and provide a good foundation to gain a ‘client for life’.