New Listings: Price Them Right at the Beginning
by The KCM Crew on October 4, 2012
Heading into the fall and winter, it is important to educate sellers on the best pricing practices to ensure that their home sells for the most money. Both KCM and Otteau Valuation Group-OVG state that “Pricing a home correctly from the beginning vs. pricing it higher in order to leave ‘room for negotiation’ actually nets the homeowner more money. In fact, OVG has actually compiled statistics that suggest for every $10,000 you over price at the beginning of your listing, you will net $3,500 less than you should have if you were priced right at the beginning. To explain in a example, if you have a $500,000 home in today’s market and you price it at $550,000 to start, you will lose an extra $35,000 off of what would have been current fair market value; this home would sell for no more than $465,000, referencing OVG’s statistics.
This was reported on in a post (KCM)we have run before by Ken H. Johnson, Ph.D. — Florida International University (FIU) and Editor of the Journal of Housing Research. Dr. Johnson explained that proper pricing has been studied by John R. Knight:
“The findings from this research indicate that, on average, properties which experience a listing price change take longer to sell and suffer a price discount greater than similar properties…
Sellers as well as Brokers/Agents should therefore be aware of the critical necessity of getting the price correct from the start. Sellers wanting to over list will ultimately take longer to sell and will sell their property for less, on average, according to Knight. Brokers/Agents’ desire to take a listing and get the price right later will ultimately lead to their working harder according to Knight, and they are not doing their sellers any favors. Thus, an initial and detailed analysis of the proper price is much more critical than many originally thought.”
It is important for agents to work hard pricing the listing correctly from the start. If not, it will cost the seller both time and money. This is why I spent the time to get OVG’s Advanced CMA training so that I could try to better assess the value of a home in today’s market.
In fact, I am excited to report that I have sold my listings at a extremely healthy 98.6% of List Price. Conversely, as a recently awarded ABR–Accredited Buyer’s Representative, I have been successful at negotiating much healthier discounts for my Buyer Clients, saving them more than 5.2% off of list price on the homes they purchased this year.
Want to find out how much your home could be worth? Call me at 917-797-5059.
Selling a Maplewood/South Orange/ Millburn/Short Hills area home involves many steps and having an experienced Maplewood New Jersey Real Estate Agent and Realtor®, specializing in the Bedroom Communities of New York City in Essex/Union County— Millburn, Short Hills, Montclair, West Orange, South Orange, Livingston, Maplewood, Springfield, Summit, Madison, Chatham, Scotch Plains, Fanwood, Cranford and Westfield–by your side will make the transaction run a lot smoother. I would love to be your Maplewood/South Orange New Jersey Area Real Estate Professional! I assist both buyers and sellers in the Bedroom Communities of New York City, mostly served by NJ Transit’s Mid-Town Direct Train Lines, offering commutes of 45minute or less to NY Penn Station, with either the purchase and or sale of residential real estate.
As an Accredited Buyer’s Agent-ABR, I have received special training to guide and educate you through the entire home buying process. From start to finish, I listen to your needs and desires in what you would like and take the information you give me to find you home. My GO-TO team can provide you the best in Real Estate advice with regard to attorney choices, Home Inspectors and Mortgage Loan Officers
As your Maplewood/South Orange/Millburn/Short Hills/Essex/Union County New Jersey listing agent I am well versed on as your local expert in all things in the Maplewood and South Orange area Real Estate Market. You can expect personalized service that includes a detailed consultation on how to best position your Mid-Town Direct home to be competitive in today’s market with training to provide my clients with an in-depth Advanced Comparative Market analysis, and advice on staging. As my office’s technology officer as well as both a Zillow Platinum Premier and Trulia Premier agent, I use the latest and most up-to-date marketing methods to get your home in front of as many buyers as possible. Being your New Jersey Real Estate Agent and Realtor ® not only involves just finding the home or selling the home, but being your guide, negotiator, advisor and advocate and making sure that your needs and goals are met. Being your New Jersey Essex/Union County area Realtor® (with a little bit of Morris Cty thrown in for good measure) is one of my truest passions, and “Helping You Find Your Dream Home” is my number one priority.