Pricing your home to sell and giving you winning home pricing strategies to actually get your home sold – that’s what we’re going to be talking about in today’s video.
Now that we’ve been in a buyer’s market for quite some time it’s really important that we talk about one of the key criteria to getting your home sold and that’s pricing. If your home isn’t selling it’s not always the agent’s fault, if they’ve taken great pictures and the home looks great it will often mean that the home is priced out of the market and what do I mean that by that?
This graphic I think is a great demonstration of that.
When buyers start start their search online they’re gonna put in their budget and look at properties that meet that criteria and let’s say dozens of properties show up or let’s just say in this case 10 properties show up that meet that criteria. They will decide to click in & get more details based on how those photographs look and if they’ve got an emotional connection or are intrigued by how the property is being represented, but of those 10 they might only start & request to view let’s say five of them, so if you’re already not one of the five that they’ve chosen you’re already out of the market, and what’s going to impact that? Oftentimes is going to be the pricing. So you have to be actually one of those homes that’s in the market everything else is out of the market. If you’re having lots of viewings and no offers and you have a lot of fence sitters it’s often going to mean that your home isn’t priced right and you’re actually out of the market.
Buyers are also going to decide to make offers on those top one or two properties that are priced right, have great value and that they have an emotional connection to. So it’s really important that you price your home to get it sold.
So what happens when you do small incremental price reductions like £5,000, £10,000 maybe even £20,000? These types of price reductions are just tasting the market down or what we call “death by a thousand cuts” this graphic shows it really well that if you don’t make a significant price reduction and get ahead of the market or get back in the market you’re constantly going to be chasing the market down and you might end up selling for a lot less than you needed to had you priced the property A) right from the beginning but B) when you did go to make a meaningful price reduction it was actually significant to get you real offers presented.
One of the push backs I get from sellers when I talk to them about a significant price reduction is
I don’t want to reduce my price because if I do then buyers are going to make offers even lower than the current asking price
and yet that graphic shows you really well why that’s really not the case if you make a significant price reduction such that you get yourself back in the market you’re ahead of the market buyers will recognize value because deals are getting done and nobody’s buying a home in your neighborhood at £500,000 when average homes are actually selling for say £1million so that’s one of the things we really need to demonstrate to our sellers is that, look, these are significant strategies and we’re going to market & expose your home the market has seen your home but nobody has responded the way we want to it’s not always pleasant it’s not always kind but the market is never wrong.
It’s also really important that your agent gives you regular constant market updates and feedback and that should be on prices that are perhaps they’ve gone under offer or that have actually sold and when we look at pricing it’s not just enough to sometimes look at the price of other properties that are on the market but actually look at the price of what’s actually selling, and again, in a buyer’s market that can be a big disconnect.
So if you want those winning strategies or you’re questioning where you need to price your home to get it actually sold then please make sure to get in touch you can reach me at +44 770 318 3750 or comment below!