What's the right price? Lessons learned.
Your house will sell if you price it right - you need a great agent with superior marketing plan, but you gotta price it right! What is that right price? You'll know when you get an offer - or at least when you get several showings in a day. If no one is coming to look at the home, it is over-priced.
Here is the lesson I learned just this month.
I was trying to sell a waterfront home for a neighbor who kept the home on the market too long at a higher price than I recommended. The home languished on the market at $625,000 (even though I suggested not going over $500,000), then languished as it went downwards to $575,000, then $475,000. Then they took the home off the market.
While it was off the market, I brought them a buyer at $425,000. They accepted the offer. The buyer had a change of heart during the inspection, but at least I knew what the home should be priced at. I asked them to relist at $425,000.
They decided to try another agent!
The other agent listed the home at $425,000 and it went under contract in 2 weeks.
I am kicking myself up and down because I could have sold that house for them 2 years ago at $425,000 - no, I could have sold it for $495,000 2 years ago. They lost money by chasing the price downward. They just weren't ready to let go of it before. When they got motivated, they dropped the price in line with what nearby homes had sold for - and it sold.
I had another one that I just sold this month with a similar - but happier - ending. I was the first and then their third/final agent. This waterfront property seller started at $975,000, even though I was recommending $650,000. When it didn't sell for over a year, I lost the listing to another agent. This turned out to be a very bad agent. The seller never got communication from the other agent and in so many ways, the agent was just plain bad.
So the seller called me back asking me to sell the home. I told him I would market his home, producing fresh new pictures and a fresh new walk-through video - if he would list it at $650,000.
It sold for $665,000 in 2 days in a competitive bidding war!
Bottom line - you need a great agent with superior marketing plan, but you gotta price it right!