Sometimes it’s hard as a Seller to understand how agents come up with the suggested listing prices especially when those prices are lower than the price your neighbor’s similar home sold for. Why should your home be worth less?
Why can’t you test the market? After all you don’t want to give it away or let someone steal it. You’re not desperate…
One thing you need to understand is that playing catch up in the real estate market becomes a never ending cycle. Especially when the market is spiraling downward. It is important to understand that pricing right at the start is crucial.
This may sound like a corny analogy but it is something I learned a long time ago during the 1st real estate market crash I lived through. So bear with me….
When was the last time you went to the bakery to buy fresh bread? You walked in, the smell was so inviting and all the loafs of fresh bread were enticingly displayed.
You walked right past the day old reduced bread…even though it was cheaper and really truth be told it was still very good but you wanted the freshly baked bread.
You might have squeezed the loafs gently, maybe you even smelled them and of course you checked the expiration dates before selecting your loaf and heading to the check out counter.
The day old stuff, the 3 day stuff in the reduced bin you passed it right by…maybe it would be good for making stuffing but thats not what you’re there to get.
You paid full price for that fresh loaf of bread…you didn’t hesitate at all. Why?
While buying a house truly does not compare to buying a loaf of bread. The concept is the same, a new listing priced right generates excitement and activity. A listing that has been on the market a while with a big REDUCED sign in the front yard does not. Pricing it right from the start makes all the difference. Why gamble with your home? Selling a home in this market can be stressful, actually I really should say IS stressful but it can be very successful.
Stay tuned for Part 2…Just how did you come up with that price?
Read also:
Multiple Offers -A Bird in the hand
Don’t stigmatize your home by over pricing!
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About Monika McGillicuddy
Hi Scott and welcome to my blog. Pop in anytime and I am glad you enjoyed my bread analogy.
Had been away from ActiveRain for far too long. Have been playing catch-up (oops … precisely what your article advises not be done!) by posting several of my listings to my AR Blog, happened upon one of yours, and ended up here.
Absolutely LOVE the day-old-bread analogy Monika. Thanks for letting me “pop in”!
Scott
Hi Kathy,
Thanks so much for your comment. I’ll think about about the signing in part but I have been advised to have a sign in for comments. Do you think more people would comment if they didn’t have to sign in?
I like your post, and the analogy….but do we have to sign in to respond??????
Midori,
Thank you so much for stopping by! I know the loaf of bread analogy
sounds weird but it really makes sense. A new listing priced right gets a lot of attention. Thanks again Midori!
Monika
Very nice blog… I love the post.. I think in our market seller’s are just starting to figure it out that pricing is the key but then again so are some of the agents (pretty scary).
Thank you Linda…I love the picture too
Ines…Thanks so much for stopping by. I hope the sellers in my market read this as well.
Quick and successful depends very much on price. Price is determined by condition and location. Right now there is a lot of competition in my market.
Monika – I love the analogy and really hope sellers read this post in your market to understand. Our Miami market is very similar and pricing correctly from the start is crucial for a quick and successful sale.
Monika, great analogy and great looking site! I LOVE this picture!
Thank you so much Randy and David!
David I really hope that the consumer gets the message. Timing is everything in life…especially in real estate life. I appreciate your comments very much.
Thank you
I like it Monika. Very valid points and easy for the consumer to understand by using the loaf of bread analogy. Now how can you get this info into the hands of all those consumers that really need the info? Aloha!
Good looking site and great article.
Part 2 will be published early next week so check back.
Consumer comments are very welcome…I’d love your opinion!