valentinosdcpulse

I hear it all the time. The common mantra among sellers: "Let's just try & see...." Each & every day sellers try to persuade me (and themselves) of why their home is worth more than Mr & Mrs. neighbor down the block. And why their dreamy pricing strategy is a viable option.

As tempting as it is to see how much your DC home can command, please heed my warning -- homes that are not priced competitively WILL sit!  The asking price determines the selling price, and statistics continue to prove this.  If you make the mistake of overpricing, I can almost guarantee your home will sit. In this high inventory market, pricing high creates a very slippery slope with a downward spiral of price cuts and low offers. List too low and you don't pad yourself enough for working with low offers.

Are you asking the right price for your home?

Of course, you and your agent want the maximum return on your home investment, so pricing your home accurately is imperative.

• Buyers will pass up homes not in their price range.
• The property will be labeled as a bad value.
• Agents do not like showing overpriced properties.

Buyers often want to test the market with their initial listing price.  Sure, it would be nice to get an unrealistic offer higher than market value.  Beware:  This is not a harmless tactic!  You will drive away potential buyers and risk losing really great offers.  Why is this?  Potential buyers will say "no" to the higher price and you will never see their offers.  They typically do not return to a home even after the price is lowered. You will miss that one chance at a great first impression....and once that window passes, it's gone for good.

If the home is priced too high, days on market will add up.  In DC, after a threshold of 60 days on market, I often see that the property begins to get a stigmatized label.  Buyers wonder -- is there something wrong with the home? Why isn't it taken yet? I must be overpaying if it's still available. In  reality, the only problem is pricing.  Price your home right as soon as you list it. While you will never truly realize the benefits you gained by doing this, take it from me -- you will be saving yourself!

Pros to pricing correctly:
1) Fewer days on market mean you'll be in a stronger negotiating position to sell
2) Limiting carrying costs -- including cleaning costs, additional mortgage payments, condo fees, insurance & more!
3) Stress -- ever try to keep a place in "showing condition" for months on end? It's not easy. When you are selling a home, expect to become a non-stop cleaning machine. Don't even think about leaving that magazine on the counter, the shower door not wiped down, or the coat on the couch! It can be overwhelming for most owners.
4) Headaches -- do you really like to be out of the house non-stop due to showings, which must occur to get the home sold? It's not easy -- evenings & weekends are popular house-hunting times, so dinners are disrupted.

No matter how much you and your agent love that condo or house, the price that a willing and informed buyer will offer will be consistent with prices recently paid for similar condos (as seen in sold listings) and the asking prices of similar condos now offered for sale.  Too often, the result of asking way too much is this:  There will be showings, but no offers. Few buyers will actually consider doing so. They will 'write off' the seller as being unrealistic AND unmotivated... or they will just take their time because they know the listing won't get another offer at that price. In this market, there's just too much competition to make that vital mistake.

Sellers are often concerned with the message sent to potential buyers if they choose to lower a price immediately after a week or open house.  Does that signal a red flag of desperation?  The answer is actually "No" because most buyers will never notice, especially if you don't write anything in the listing about a price change.  Buyers don't often inquire about the initial asking price - they just want to know how long the home has been on the market.

Need help listing your home at the right price & an agent that has proven strategies to get it sold?  Don't hesitate, contact Rachel Valentino, DC's "Best Real Estate Agent" as voted by the Washington City Paper for a no-pressure consultation. Rachel is on top of DC's real estate scene and active in all avenues of the market - including private residences, new construction, luxury market and the condo and co-op community.