Pricing Your Home to Sell: Do not OverpriceOctober 8, 2011
Whether we are in a bear or bull market, it is essential that properties are priced right in order to sell. Buyers are very savvy and market educated, considering the unlimited access to luxury real estate information nowadays. Sellers, some of whom bought high, must be more realistic in dealing in the Boston luxury real estate market and practical about the sales data, especially if they have done extensive renovation.
It’s tough, because everyone loves their home and would like to get as much for it as possible. But the asking price has to be within reason, based on recent comparable sales in the market, or comp sales. It is not a rocket science. Most studies show that the sellers, especially those who bought just when the market peaked in 2007 or later, tend to price their homes higher than market value so they don't lose any money. This could eliminate potential buyers who know the property is overpriced initially.
Pricing is a sensitive and tricky issue, and simply presenting the comp sales data to a seller is not enough. It’s important that the sales agent is knowledgeable enough to have seen all of these luxury homes Boston, knows their interior condition and their level of renovation, if any, their location in the building (if a multi-level complex), the parking situation - indoor or outdoor, and the availability of green space. Additionally, the comp sales data must be recent, going back no longer than 6 months.
If the luxury home Boston has unique features and, at the time of marketing, no similar properties are on the market, you can ask slightly higher than its value. The market will then determine the price. In many instances where the property is valued under market price, the sellers are often faced with multiple offers even in a bear market. It’s possible to get an offer over the asking price that may exceed the market value. I see this most often in price ranges under $1M.
There have been occasions when sellers have decided to price their property very high and there happens to be a buyer in the marketplace at the right time who feels the space is right for them and is willing to pay. However, this doesn’t happen very often in Boston luxury real estate. Listen to the expert advice and price your home to sell!