Why Pricing Is The Only Thing That Matters

And why your home isn't selling after reducing the price.

You're probably sick of hearing Realtors shout the same thing from the rooftops - the best strategy right now is price.  And yes, they're right.  But why is that the only strategy that works right now?

If the past 5 years have shown us anything, it's that the market isn't what it used to be.  Interest rates dove, demand shot up,  interest rates rose, and now we're here.  And where is here anyway?

The short answer is we're in a normal, balancing market.  The long answer is, well, longer.  Some homes are getting multiple offers the weekend they're listed while others sit without a single showing.  Open houses are either wildly popular or they're deserted.  So what gives?

When listing a house for sale, you and your agent discuss a lot of things, one of which is list price.  One thing that I think needs to be better explained to consumers is that the list price is not the same as the sale price.  Yes, you heard me right.  The list price is the invitation, the evite, to come to the party, to check things out, to see the place in person.  The list price is the open invitation to come have a look.

When a potential buyer is browsing the internet looking at homes that could work for them, they're looking at yours and comparing it to all the others for sale in the area that meet their needs.  How does yours stack up?  Is it the highest priced and in need of the most work?  Then it probably won't sell this weekend.

On the other hand, if the property is priced competitively when compared to other properties on the market, you'll have a lot more activity. 

Some sellers think that pricing a house too low initially will net them less than pricing it a little high.  They want to leave a little room for negotiating.  What this does in reality is create a situation where buyers won't even come in the door to see the house in person.  If no one is seeing the house, no one is making offers.  The longer a house sits, the more buyers worry about what's wrong with it.  There could be nothing wrong(!) but perception is everything.  And a stale listing has a harder time than a fresh, new one.

The market will decide the value of a home.  If you price correctly the first time, you are more likely to have many showings and offers.  If you price too high right out of the gate, you're missing a valuable window that you can't get back.

This is just one of my jobs as a Realtor in Milton, Georgia.  I love helping homeowners prepare and list their homes for sale and helping buyers find their dream home.  If you're thinking of making a move in the Milton, Georgia area, I'd love to talk with you one and one and develop a custom plan for your move.