I recently had to sell a house. Of course this is what I do for a living, but this was, actually, my house. It is a home with emotional ties, as my beloved mother-in-law lived there for nearly two decades. It is located in Riverside County, so not in a market with which I am super familiar.
Running a market analysis is something every good Realtor can do quickly and by taking time to preview active listings and drive-by sold listings, you can become an area expert in no time. So I spent an afternoon becoming an expert, but I also called the advertised âarea expertâ to pick her brain. We didn't quite agree on the price. She was convinced I could get at least $230,000 and I thought the price was $220,000.
So here I was in the position that most of my clients find themselves. I wanted top dollar, I wanted it sold quickly, but I didnât want to âleave something on the tableâ as I have heard so many clients say.Â I decided to go with the agentâs higher price as she was adamant it would sell quickly.
The first weekend on the market, the electronic lockbox told me the home was being visited by numerous agents. I made follow-up calls and the feedback said it showed well. One agent was convinced she would be sending an offer the next day. Fast forward to day 21 on the market. The showings slowed and finally when an offer arrived it was for only $215,000 and the buyers didnât appear strong financially. Â Twenty-one is the magic âDays on Marketâ number I use with clients as good time to do a price reduction.
So listened to my own advice and lowered the price to $219,000. Now this doesnât seem like a big difference, but it was a 5% reduction. Soon we were countering multiple offers and we were quickly in escrow at my list price.
Here is what I learned from this exercise. It takes bravery to price a home low. The market sets the price of a home. The only thing you leave on the table by pricing it high is valuable time. Multiple offers make you very happy. I am gifted at guessing the market value of homes.
Thinking of selling? I would be more than happy to give you a free and quick market analysis. Call me directly at 562-243-2171 or you can also fill out the form below.