Why is real estate market time so important? | Weekly Bay Area Real Estate Tip #18
Every Tuesday, I go into detail a question I frequently get asked. Question of the week! Why is real estate market time so important?
Everyone wants to sell their house for top dollar, but you don't do it by pricing it high, you do it by limiting your market time. The key to selling your house quickly and for top dollar is by playing the game.
You'll receive the most amount of traffic and showings for your house in the first two weeks its listed. When your home goes on the market, it becomes the "new" listing, and serious buyers will quickly schedule an appointment for viewing "before it's gone." It's this "buzz" that creates the urgency amongst the buyers because they know that new listings get a lot of traction and that if it's a good deal, it's going to go fast.
People tend to want things they can't have, and it's no different in real estate. Have you ever wanted something more because it was no longer available? Think about any collectors items with a limited quantity. When a new home comes on the market, it gets a ton of interest. Your best chance at selling it is going to be those first two weeks on the market because nobody likes losing out, and many buyers will think it's going to be gone if they don't act.
Now let’s think about it on the other side. What happens when your listing sits on the market for longer? A different mindset happens to buyers as their initial assumptions are what’s wrong with the property. People will assume something terrible has happened with the property and think, what did others miss about this home? As a listing agent, you lose a lot of your leverage as well since you will not likely deal with multiple buyers anymore. Which house would you be more likely to negotiate: the one listed for six months or the one that just hit the market?
It, for reasons like this that pricing your house too high at the beginning can hurt you in the long run. "Testing" the market comes back to haunt you, so my best advice is to price it accordingly with your agent where the price is "positioned" to increase the most amount of activity. Many times it’s smarter to price a few % below market to drive a lot of traffic and for a bidding war. Remember we don't create the market, we can only adjust to it!
If you are tired of renting in the Bay Area, are a home owner looking to do a trade up for a bigger home, or are wanting to sell your home for top dollar, I would love to connect!
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Born and raised in the Bay Area, I spent 11 years as an Enterprise Sales Manager before becoming the Tech Realtor of the Bay Area. Having the background as a homeowner, investor, and renovator, I leverage data and insights to help my clients gain a competitive advantage with their real estate journey. Communication and knowledge is key so as long as I'm awake, you will get a reply from me! I have helped 31 families YTD for over $40MM in delighted transactions and I look forward to help you too.