I am starting the thought process of selling my home and moving to a simpler lifestyle. 5 country acres with gardens is getting to be a bit much and a more simpler lifestyle is starting to seem like a good idea. There is a lot to go through and think about as, like many, I have collected over the years. It all can not go with me so the planning starts now. Upon having the converstaion with hubby he said 'well when we get ready to put our home on the market I do not want to give it away. If we put it on the market and get an offer right away that means we priced it too low right? Shouldn't we price a bit higher?? Oh my....this is a misconception that many people have.
Receiving an offer right away means we priced properly for the market we are in. It means we priced to sell and move on with our lives. It means we did a fabulous job of showcasing our home in the best possible light for the most money that the market would bear.
Selling one's home quickly does not mean that you gave your home away and left money on the table. It is a misconception that many homeowners have when in reality when one prices right one sells right.
Pricing ones home to reflect current market conditions is the very best way to receive the very best price.
But that means we priced too low right????
Not at all.
About the Author Martha Brown- As a third generation Annapolitan I love to write about my experiences in and out of the real estate market. Licensed since 1992 all with Long & Foster I am a Certified Residential Specialist (CRS) and a Seller Representation Specialist (SRS) whose passion is homes in the Annapolis MD area and surrounding communities. My goal is to help my clients understand the real estate market and to then make sound real estate decisions.
Martha can be reached at 410-260-2800 ofc or
martha@homesaroundannapolis.com.
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Martha Brown of Long & Foster Real Estate.
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You are correct! Getting an immediate offer means you priced it right. Great post and I know you are going to miss your place. Don't down size the lot too much. I moved from the country to the nearby town and 7 years later still can't get use to neighbors being 10 feet away on either side of our home.
Hello Martha, wow 5 acres and deer, I would stay. Pricing it right in the first place will can the home sold right away. I wish more people would understand that.
Sussie- I adore this place and it took a lot of 'heart' struggle to even get to the thought of selling. I am sure i will have the same challenge of getting use to neighbors.
Will- yes we have deer, lots of deer, geese, ducks (we have an acre pond) and a wandering peacock. It is natures little slice of heaven. Hmmm how do you price that? LOL
Martha, I live on 5 country acres as well in a cape cod. It is one level with the exception of a bonus room above the garage. I currently have my office there but we've talked about moving it to the main level with both kids in college. Anyhow, I'm hoping it will be a long time before we sell but Tom is 9 years older than I am so a lot depends on his continued good health. However, when I left my home in Illinois several years ago, we sold just about everything. I will tell you it's quite freeing to let go of things. Especially, items you haven't seen or used in years.
Martha, good post, glad to see other Long & foster agents making use of AR.
Just because it's your own home, the same issues seem to come up -LOL! Everyone thinks the same way. Before I was a realtor, I thought it would be easy to sell my home as a FSBO. Security concerns and pre-qual's quickly changed my mind.
I think my husband recently said the same thing - even though it's something I've talked about for years! This is why sellers want to add that "wiggle room" which, in fact, overprices their home.
Selling a home can be stressful and emotional. Better to price it to sell quickly then be reminded week after week it's on the market.
It's a common misconception amongst sellers. They get an offer and think they priced low....NOT! They listened to you and me and are at market value. Of course you're going to get an offer....now just view the offers before your 'new' listing goes cold!
Tammie- I have lived small before and loved it so I am looking forward to culling the goodies.
we are at the very beginning with a 2016 move date.
I have been here awhile Nick & trudy. I sort of come and go. Right now I am working on staying. LOL
They sure do Olga. Like this one, each home has it own unique set of nuances that require a great Realtor to navigate. It is never good to be a fsbo.
Isn't it the truth Margaret. I know my husband and I have had the price right conversation a hundred times before if not more. LOL Goes to show that a Sellers hat goes on mighty quickly no matter what one know.
That would make a great blog post Pamela
This goes hand in hand with the "I must low ball this home even though it's priced under market". We've lost 2 homes already as the buyer will not listen when I tell them we really need to come in strong in order to get this home.
Great post!
I am having this conversation with a seller right now. She insisted on an overinflated price, and is frustrated that it isn't getting any showings, and doesn't want to reduce the price, because she thinks she won't have any 'room for negotiation'...
It's tough to negotiate when you don't have an offer in the first place, but she doesn't want to hear it...
Martha, it is such a common misconception. Real estate professionals know better. When the time comes, you will know how to price your home ... and it will sell because it is priced right.
I always tell people that if a house sold quickly (and at ask, close to it, or just over it) we priced the house right.
Martha it will be a process figuring out what to keep and what to let go of. I've allowed lots of stuff to go to others that will use it - much more so than I did or would in the future. It's a freeing feeling! We also are remodeling and updating to prepare to sell - and to enjoy it a few years before we sell. Pricing it correctly to what the market will bear is the best practice. I'm sure your hubby will listen to your expertise!
The whole pricing debate will never get settled with sellers. So many prefer haggling when they'd be better off pricing right and getting sold right away.
If you priced it too low, you would get into a bidding war.
Martha...
The right price is a call to action for any serious buyer. And who knows, you might even get multiple offers!
I always tell my sellers the market will not allow you to "give your house away." If it's under priced, multiple offers will drive the selling price to market value.
On the other hand, if it is priced over market value you will have to keep it "show ready" month after month and those showings will be far and few in between.
Reminds me of an article I wrote some time ago, and I can't remember the exact title. Something like "Your Home Sold in 3 Days . . . Because We've Been Looking for 3 Months" In a tight inventory market a home priced right sells. Period. If not, it sits and sits.
Great post spot on. Getting an offer right away is awesome. How can the property be priced to low. Not at all
Martha,
You know how to say it best on pricing to sell, I like slightly under pricing the property myself to create the perfect storm.
It's a fine line. There are homes priced "to low" but in some cases there is a reason for the pricing. A home that shines and is priced even slightly low will likely bring multiple offers.
As we were driving to the house we live in now, my husband was sputtering something about not offering full price. 5 minutes later when we saw the house and the property, we were discussing a contingency free offer and escalation clause. LOL I still laugh about his misconceptions before even seeing the house!
Martha,
When a house sells within days of listing it usually is an indication the seller used the right agent who knew the local market well. Kudos to the LA for representing the seller's interest well.
I bet that was a shocker when your Husband said that! Very well written post Martha, and spot on!
This is a popular misconception for sure. You stated the reality:
"Selling one's home quickly does not mean that you gave your home away and left money on the table."
I agree 100%. Correctly priced property should sell quickly. If the decision has been made time to go for it.
Martha, tell hubby that if it sells right away, he needs to thank his lucky stars and give his Realtor a big hug and kiss!
Martha - this is what we try to achieve - an offer on day 1. However, the sellers think otherwise. If we set the expectations right on day 1, it works - partially, though.
I just pretend that the seller is actually saying 'Thank you for doing your job well and selling our home quickly.' :)
Funny when those sellers that need to be educated are at your dining room table. Good that he took it with the first lesson being imparted and sticking.
Good luck with the sale.
I gauge expectations with many sellers and let them know that we'll probably get it under contract right away. The real works starts after that, especially if there is a loan being processed. I don't get paid to sell homes. I get paid to make sure it closes, preferrably on time. Best of luck with your sale and downsizing.
If you get an offer right away, you priced it perfectly! That's the goal.
I've had this conversation many times with sellers. If we price it to sell, it will sell quickly. If we price it too high, it will sit.
Human nature...We get what we want and then WE question it? I have had this happen and the greed process can be over=whelming...What helps is when you look at it as a mission to be accomplished and not a cow to be milked until dry
IMHO that means it was priced just right.....not too low at all.
This is a well written explanation about pricing and quick sales, Martha! I also like Carla's #20 comment!
So right Martha! If you price it above market value, you're just going to sit there and your potential buyers will lose interest!
I prepare sellers for quick offers and multiple offers when their home is priced right. I also explain the caveats of pricing a home too high.
Martha, congratulations, sometimes a home will be priced just right and still can sit there for couple of months or more. I listed a half acre about a month ago, placed a nice post sign and I thought it was going to sit there for couple of years. I had agreed to list a little higher than it should had been, but the seller had agreed to lower within a month at the price I recommended. To my surprise, we received an offer within seven days at my recommended listing price; my seller accepted. Listings are like a box of chocolates:)
I prepare my sellers for their home to sell quickly. That is the goal. We don't want to sit on the market for months and months. So, it would make sense that we should receive an offer in short order for close to the asking price. All of the buyers had seen what the market had to offer, then boom. Your listing came on the market and it was the "new kid on the block". Everyone rushes to see it and you are under contract in no time. That is how we want them all to work, right? Or maybe that is just me. :)
Martha, that thought process gave way after the bubble burst and now I see all of real estate as a competition. Getting that early offer tells me that we're the #1 Contender which is exactly what I would want to be!