VIDEO – HOW TO PRICE A HOME TO SELL
In this episode of The Real Estate Breakdown Pey talks about pricing strategies in a seller’s market with respect to how to price a home to sell in Washington, D.C. In addition to proper strategic pricing, consider Staging your home. After all, if the price is right and the photos look great with staging, you’re going to get buyers through your doors. That’s really what it’s all about, right?
How to Price a Home to Sell Video Transcript:
“And I’m back. I’m Pey Behin. This is the Real Estate Breakdown. Today we are talking about how to price a home to sell. Should I price above market value and leave room to negotiate or should I price at or below market to try to get multiples. Right after this.
Okay. So there’s a science to pricing a home. In DC, Maryland, Virginia, it’s a very hyper local market. It means prices can vary from neighborhood to neighborhood and even as … What’s this? I don’t know. And as targeted as from street to street. Now let’s talk about the DC Metro. Here we’re perpetually in the sellers market. Especially in DC Proper.
“But Pey, can you give me a hand? I don’t know what a buyer sellers market is.”
I’m glad you asked.
“You are now about to witness the strength of street knowledge.”
A sellers market is typically defined as the number of homes available is under, can you guess it? Six months. And for the past five years in DC, that number has been about “dos monthos.” Two months. If no more homes were listed from today and onwards, we would be out of homes in roughly eight weeks. So demand is very high here, supply is very low.
Getting a little bit of real estate education here.
Price it high, chances are you’ll sit there. Just pay months and months of mortgage and the home won’t sell. And when you do get an offer, you’ll be low balled. Not sure what that is. Buyers will look at you and think, “No way is that seller getting my money.” The advice I give my lovely sellers is to either price at market value or slightly below in order to generate multiple offers.
Now how does that work? People will think it’s a deal, you generate interest, a buzz. Buyers will now compete with other buyers for your home. And instead of looking at you thinking you’re not gonna get their money, now the buyer is looking at the other buyer thinking, “That person’s not gonna get my house.” And in DC with one in every two homes getting multiple offers, for the sellers it’s… Sweet.
Now sellers, when interviewing agents, be wary of those agents pricing your home at more than what you thought it was worth. And while the home sits on the market, chances are they’re gonna come back in three weeks and ask you for a price reduction. I would listen to the agent that’s pricing the home at market or slightly below than any agent that gives me some astronomical number. And with our market with number of buyers greatly outweighing the supply of the home, I genuinely believe that you could price a home at $1 and the market will naturally correct itself to the proper price of market value where your home should be sold at.
But when you over price a home … Goes down. A buyer’s gonna walk into your house, see this overpriced home, and then go down the street. Now you’ve actually helped the buyer make the decision to buy your neighbor’s home. Meanwhile, you’re sitting there month after month paying your mortgages wondering why your home’s not selling. Don’t be that guy.
And the longer it sits there, the perception gets to be there must be something wrong with it. And there is something wrong with it. It’s the price. When the price is high, everybody thinks, “Well, let’s just offer $200,000 less.” You’re going to be offended and then you don’t even get the offer. So just try to find the market value for your home and price it just below that. And say hello to our good friend, multiple offers.
Thanks for watching the Real Estate Breakdown. I am Pey Behin. You can find me on Twitter, Snappy Chat, Book Face, the Gram, all the same name. Thanks for watching.
And for those of you commenting on my last video, my brokerage is not “Holler” Real Estate, even though it’d be a much cooler name. It’s … If you couldn’t tell by real estate being written backwards, it’s Real Living At Home.”
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