This summer, inventory is the lowest it has been in 18 years! Long Island’s inventory is down -14.08% over May 2016. With buyer demand up, Sellers have a window to sell quickly and for top dollar. Many LI homeowners are getting above asking price. While there are many factors involved in a successful sale, price is one of the most important.
The Pricing Principle: Tips for Selling at Top Dollar This Summer
By Melissa Carmelitano
SRES Certified Real Estate Professional
Exit Realty Achieve
A common misconception is to price a home higher than market value to leave room for negotiation. In reality, this can work to alienate buyers, rather than engage them.
The above pyramid shows the importance of both establishing market value, and sticking close to it. When Sellers list at market value, they can expect to capture 60% of the buyer pool. About 40% on average will be looking for a smaller or larger home, but pricing close to true market value will help you to capture over half of the total buyer pool! The ultimate goal is for buyers to fight with each other for the home, not fight with the seller over price! The more buyers a homeowner can capture, the more likely it is that the home will receive multiple offers – the best way to get your ask price or above.
By listing a home at a price close or at market value, your Real Estate Professional can negotiate from a point of evidence. This means, they use comparable, recently sold homes in your area to argue for your desired price. Pricing close to market value streamlines negotiations--making them quicker and less stressful. You are also more likely to get what you want as a Seller, when there is plenty of evidence to support it. By listing at market value, homeowners can be confident in their expected sales price, rather waiting and hoping for buyers to slowly come up in price. When Sellers list at fair market value, price is established and defendable from the very beginning.
Thinking about selling? Seek out an agent who can provide education on the marketplace. Our job as Real Estate Professionals is never to convince a seller to sell; it is simply to provide information so you as a seller can make an informed decision. The market is hot this summer--homes that are priced right are destined to sell quickly and for top dollar!