Greetings and welcome to another edition of the Sweet 650 Homes Realtor's blog, by Ramy Sghayer, Realtor®. This week, I give a quick but very useful lesson on intelligent pricing and the timing of marketing, so your home sells and doesn't end up in the "Expired Sales" section.
As Millbrae, Burlingame, and San Bruno residents all know, we are currently in a "seller's market", meaning inventory is low and competition among buyers is fierce. A home priced and marketed correctly can likely sell in less than a month and in some cases one week! Despite local market conditions, we still end up seeing homes that don't sell. Why? Well, more than likely, the home was not priced or marketed correctly.
This graphic shows us some important things: First, it shows that fair market value attracts buyers, overpricing doesn't. Pricing at market value should attract 60% of buyers in the local market, however if you price a mere 15% over that, you lose 50% of local buyers looking at your home. These are all buyers who have friends, family, and colleagues who they can pass the word about your home along to. You can imagine how easy it is to mistakenly price a home too high, say 20% too high, and then lose a giant chunk of the buyer market who are off considering other, better-priced homes. We also see that as you go lower, to 15% below the home's market value, the number of buyers climbs to an impressive 90% of buyers. Not only will this strategy sell the home, but it will attract more and better offers, likely leading to a bidding war where the seller holds leverage and can choose the most attractive offer.
The Timing of Effective Marketing
Pricing is one key aspect of selling a home, marketing is another. When we talk about intelligent marketing, much has to do with creating attractive content and showcasing the home's highlights. However, a less talked about aspect is when to execute your marketing strategy and where to focus your time. Incoming graphic!
This graph, courtesy of Cloud CMA, tells a simple story: That is that a home's first two weeks on the market are crucial. This is the best time period to focus your effective marketing efforts. This includes two rounds of open houses, Tuesday broker's tour which you can attend with an agent, social media blitzing and crisp professional photography including drone videography on all the websites, starting with the MLS. As a home spends more and more time on the market, the activity of buyers towards the home drops and levels out at consistent low.
There you have it! A quick but crucial lesson on pricing and marketing your home to sell. Let's recap:
For pricing, the best way to get more buyers interested in your home is to price at market value and below to attract even more buyers. When you price just 15% over market value, you lose 50% of the buyers out there looking at homes. Couple this great pricing rule with intelligent marketing timing. That is, your first two weeks on the market are the best place to focus your strong marketing efforts. After two weeks, many have moved on to home's that have just hit the market. Remember how many people out there have new listing alerts. I know I do!
Thank you so much for reading another Sweet 650 Homes Realtor's blog, by Ramy Sghayer, Realtor®. If you have thoughts of moving, or know anyone else who does, give me a call at (650)691-5189. I would love to help them price and market their home to sell and locate their dream home. Have a wonderful week!