When it comes time to sell your home, determining the best possible list price can be a challenge in any market. In 2024, while median selling prices are at record levels, there does appear to be some softening and the percentage of list price received has declined from the staggering heights of 2022.
When we meet with potential clients they are always eager to know what their home is worth and what the list price should be. To begin this discussion, we often refer to 3 distinct approaches that should be considered.
The first is Aspirational Pricing. This is often used when a property is unique or has some sort of celebrity or historical status. While there is more room for negotiation there is also a limited pool of buyers and the timeframe for selling could be extended.
The second is Perceived Market Value. This strategy is based on a detailed market analysis expected to attract the highest number of buyers and fairly priced offers. To be successful, however, there must be confidence that the initial valuation.
The third tactic is what we call Event Pricing. This involves deliberately pricing your home below its estimated market value to create a sense of urgency and foster multiple offers. During the last 18 months, this strategy has sometimes proved successful. However, with higher interest rates, more inventory, and lower demand, its effectiveness has diminished.
In the end, the conversation around pricing should transcend the numerical aspect and delve into the realm of strategy.
Understanding these options empowers you to make an informed decision based on your unique circumstances and goals.
Until next time, Imagine More!
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About the Author: Michael
