Lamacchia Realty on Pricing Your Home to Sell
If you’ve been trying to sell your house over the last year or so and you haven’t been able to do so, you can blame the market, you can blame the buyers, you can blame your agent, but maybe you should be blaming yourself. If your house isn’t getting much attention maybe it’s time to take a look at the price. Our real estate experts John McGeough and Anthony Lamacchia from Lamacchia Realty are going to delve deeper into this matter. And it’s kind of a tough pill for people to swallow I think when they say, “what do you mean we’re overpriced?” because they certainly had an amount of money that they have in mind that they want to sell for, and the first question is, how do you determine if your pricing is off on this?
Well if your home is on the market for 3 to 4 weeks and it’s not selling and you’re not getting any offers not getting very many showings, that’s a very good indication that your price is off and now the question becomes how much do you adjust the price and that’s where we came up with a bit of a formula for that.
Ok and I think we have something we can display to underscore what that is, but before we get to that, you say 3 or 4 weeks– is that a fair sample time?
Depends on the time of year. So this year we’re starting out with much more activity that we’ve seen in the past based on the light winter, so on average as Anthony says 3 to 4 weeks, 30 to 60 days is pretty much the mark that we look at depending on the type of home, if it’s a typical home, say it’s a Colonial, and there are plenty of comparables, the market’s going to react very quickly and you don’t want to let too much time pass because you’re going to miss the market
So that time frame we talk about coupled with how much activity you’re getting, you got to factor those two together and then maybe you’re overpriced. What if you’re in a tight spot and you really can’t afford to lower the price, you start lowering your price and you think hey, I’m selling the house for less than what I owe, I owe more than what it’s selling for. It can be a problem.
That’s the biggest thing that sellers say, they call us and say, well I need $300,000, I want $300,000, and I always nicely say to them, when you were buying the home did you ask the seller what they needed or what they wanted? No! Buyers don’t care what sellers want or what sellers need they want to pay what the property is worth.
So John tell us more about the formula you use.
So on average if a property’s on the market for 3 to 4 weeks, and there’s some decent activity but no offers yet, you might just be slightly off– it’s maybe 3% to 5%. If you’re getting real low showings, we call it just drive-bys, you see folks just kind of peering into the house, it’s more like 6% or even 10% off. If there’s just, as we say, it goes dark: no showings, really just drive bys, nobody’s even peering in, not even slowing down, then you might be 11% to even 12% off. And those are basic numbers, it’s a model we’ve always used and most industry experts support it. If you follow that to a T, your pricing will get dialed in a little better and immediately you’ll have increased activity. And we always say it’s better to have an offer and work with somebody than having nothing at all. And nobody’s wasting time making an offer unless there’s some real interest.
Ok and quickly our final question, what if you’ve had your house on the market for a while and then you say well let me take it off the market and then I’m going to put it back on again, what are the pitfalls of that philosophy?
Well I’m glad you asked that, if your home’s not on the market it has no chance to sell. And I had a seller who we put his home on the market back in November and he called me the first week, or second week in January and said, “I can’t believe we’re not getting any action, let’s just take it off the market until the spring.” And I said “I don’t recommend you doing that because then you have no chance to sell.” Yesterday I spoke with him and he said, “I can’t believe it we’ve had three showing this weekend and we had one yesterday,” so clearly he’s happy he stayed on the market.
And another quick question if you do take it off the market and then buyers start to say, “wait a minute, they had it on the market and then they took it off, then they put it back on.”
Right, it happens, but you can’t reset the market history anymore. So it used to be you take it off for one month and all of a sudden it starts back to zero, you can’t do that anymore with MLS–that number follows you to the end that’s why we tell folks you can’t fool buyers in this market.
All right, thanks guys, check them out at Lamacchia Realty and find out more on mlrealtyne.com.
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