In pricing a home, many sellers have an extremely difficulty time pulling the emotion out of the equation. After all, it is worth so much more in factoring in the memories. One of the most crucial steps in being able to sell quickly, open escrow, and obtain the highest possible net proceeds from the sale of a home is to carefully arrive at its Fair Market Value. Yes, the current market is a sizzling Hot Seller’s Market where homeowners are obtaining multiple offers that are remarkably close to their asking prices. In many cases, they are even able to get more than the asking price. Yet, in every price range, homes sit without success, leaving these sellers wondering what in the world they are doing wrong. 33% of all homes in Orange County have been on the market for over two months.
Throwing a price out there just to test the market is not a wise strategy. Ultimately, when the asking prices of homes must be reduced in order to secure offers to purchase, it not only takes longer to sell, sellers sell for less. Accurately pricing is critical in obtaining the highest and best sales price. Homes that do not require a price reduction ultimately sell for more in a lot less time. The amount of market time increases substantially for those that must reduce.
Carefully and methodically pricing a home is vital to cashing in on today’s Hot Seller’s Market. The first few weeks after coming on the market is the crucial time period with the greatest exposure and heightened buyer activity. Reducing the price to be more in line with a home’s Fair Market Value is not met with nearly the same fanfare as a home new to the market. The excitement is no longer there. When something is brand new to the market, that is exciting. When something has been exposed to the market for a while, it becomes a bit “shop worn” and loses some of its marketing luster.
Buyers in today’s real estate market will tell you that it takes more than 1 offer to secure a home. The competition is high and the majority of properties are receiving multiple enticing offers. My strategy to get my clients’ offers accepted not only focuses on offer price, but loan, inspection and appraisal contingency timeframes while factoring in several other creative strategies. I am beyond excited for recent clients of mine who despite being up against 4 other buyers, made their first offer, and it was accepted without having to compete in a multiple counter offer. Their dream home in Dove Canyon on a 13,000 sqft lot will be theirs in less than 30 days.