I literally cringe when I am meeting with a potential home seller and they make the statement, “I am not in a hurry to sell, so I want to price higher.” What I immediately know is that mindset is going to cost them money. I virtually hear the sound of money sucking right out the window. They couldn’t throw money away easier if they tried.
The whole concept of this series is about how to sell a home fast in Fredericksburg. But, that begs the question, “Why is it important to sell fast?” Why does time on the market really matter. The short answer is that less time on the market almost always equates to a higher sales price.
PRIME SELLING TIME ON THE MARKET
The first weeks on the market are the most crucial time to sell your home. That is because this is when there is the most buyer interest. Think about how consumers buy things. They are almost always willing to pay more when something is new and there is more interest in it. Take the iPhone for instance. When a new iPhone comes out, everybody wants one (in fact they will wait in long lines for it) and it will cost a lot more when it’s new, than it will later when the interest has gone down.
So, the fact of the matter is, if your home is priced appropriately it will receive the most showings in the first four weeks. Around week 4 interest begins to seriously wane on your home. This is why it is extremely likely that your highest offer will come in those first few weeks on the market. You don’t want to squander away this opportunity to get the most money for your home.
Buyers and real estate agents alike are constantly on the lookout for the newest listings to the market. Serious buyers want to get in quickly and take a look at your home before someone else snatches it right out of their grasp. Buyers will pay more for a home today if they think it will be gone tomorrow. This mentality puts you, the seller, in the virtual driver’s seat for negotiations. Buyers and especially real estate agents understand that as a seller, you are far less likely to negotiate on price now when you are new to the market. But let your home’s listing get stale and stay on the market for a couple months, then buyers begin thinking “lowball offer.”
Have you ever gone to an auction? When something is being auctioned, it is a really interesting study in psychology. When there are multiple people interested in an item, the will pay more for that item than they otherwise would have. The same concept applies when your home is new on the market.
But, don’t misjudge home buyers, this mentality won’t make them stupid. Today’s buyers are better educated on the real estate market than ever before. They have a wealth of information right at their fingertips. In fact, most people carry around the ability to immediately and constantly monitor homes and home values in their pocket… their smartphone. They know when a home is overpriced.
Our team has helped a huge number of buyers over the years find and buy homes. A common question that a buyer asks when viewing a home is, “How long has this home been on the market?” There are two reasons they ask this question. The first is because if a home has been on the market a long time, they know the market is saying the home is overpriced. The second reason they ask this question is they are thinking about how low of a price they can offer.
Likewise, when our team is working with a buyer, we also look at time on the market as part of evaluating the offer we recommend our buyers make. If a home has been on the market too long for the market conditions, then more than likely I am recommending a discount off the listing price of at least 3%.
So, let’s do a recap so of what we have covered so far in this series of How to Sell a Home Fast in Fredericksburg. Part 1 of How to Sell a Home Fast in Fredericksburg covered getting maximum exposure and internet marketing. Part 2 of How to Sell a Home Fast in Fredericksburg covered the why you want to sell fast to begin with.
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