How to Sell Today…

Given the current market conditions, sellers would do well to be grounded in some sobering facts. In my last article, I reviewed the challenge faced by sellers pricing at 2005 levels; trying to cash in on unrealistic expectations and exorbitant profits. This speculative attitude has lead to an oversupply of homes on the market.

Fact: While residential real estate in many market segments has appreciated, the ‘real’ story is that there is nearly a nine month supply of available inventory Valley wide. This underscores the fact that this is now a “buyer’s market,” as has been widely reported.  What this means to sellers ‘today’ is that pricing against the competition is more important than ever to effectively sell your home.

Problem: For the motivated seller in today’s market, it is customary to price their home against recently sold comparable properties. However using this method in a buyer’s market may lead to disappointment, as only the best one out of every nine properties on the market will sell in any given month. If your property isn’t perceived as the best available (price, condition, location, etc.) at the time, it will be overlooked, thus accruing days on market. In real estate, we like to say “time is of the essence,” but the reality is that time is the enemy. Properties that aren’t selling are perceived as “market-worn”; begging for low offers. This explains why new properties receive the most attention by agents and clients alike, and if well-priced, will sell very quickly. Contrary to popular opinion, even in today’s market, these well-priced, “hot” properties can still receive multiple offers. There always will be a demand for the next best property.

Solution: Be objective. How? Get your REALTOR® to physically show you the competition you are up against. Keep in mind, having the most amenities doesn’t necessarily translate into getting the highest price. Use those amenities to stand out from your competition rather than pricing yourself out of the game. Again, remember time is the enemy. You must be perceived as exceptional to sell in today’s market. 

Offer more for less. Be the exceptional property. This is not just a function of price relative to location, size and amenities, but also condition. Perspective purchasers will disproportionately discount homes for perceived needed improvements. For example, it is when carpets are worn, sellers often offer a carpet allowance in lieu of replacing it themselves. While the seller may view this as a benefit, buyers may perceive the home to be a “fixer-upper,” thus discounting the price more than the cost of the carpet. By contrast, homes that are clean, clutter-free and well-maintained will stand out from the crowd. Good REALTORS® today know how to get the biggest bang for the buck through proper home staging. Now more than ever, you don’t get a second chance to make a first impression.

Obviously, no seller wants to leave money on the table. The point here is that ironically, testing the market through overpricing can actually create a loss. Through very careful competitive positioning, today’s motivated seller can still achieve a timely sale with these strategic solutions in mind.

By Dominic Scappaticci
CEO and Designated Broker
Russ Lyon Sotheby's International Realty