
PSA 🗣 LIST PRICE IS JUST A MARKETING TOOL
Though studies indicate that pricing a home slightly below market value will drive the most traffic and yield the best returns in terms of offer price and reduced time on the market, sellers are sometimes reluctant to price below market value, worried that they are leaving money on the table. While that will definitely not happen in this sellers’ market, sellers are not obligated to accept any offers they are not satisfied with.
Buyers on the other hand may struggle with the idea of offering tens or even hundreds of thousands over asking price, either because they are more familiar with markets of the past when it was not uncommon for offers to be accepted for less than listing price, or because they feel “deceived” by the strategy of a low list price.
Adding to the confusion, some listing agents take a lot of liberties with what “slightly below market” means, sometimes pricing several hundred thousand below what they project a home can fetch—either intentionally or because this market is so heavily unbalanced in favor of sellers that a desperate buyer may come in well over a projected sell price just to secure themselves the home. 🙃 Further, some less scrupulous agents may promise a seller they can deliver on a higher price just to secure themselves the listing. 👎
That’s why it’s important to work with a team who understands the market and can set you up for success—that’s us! 😉
In El Sereno over the past three months:
48 homes have sold in an average of 22 days on market
Sold prices (SP) ranged from -25% under to +41.4% over the original list price (LP), with an average differential of
+6.9% over LP.
In dollars, homes sold from -$124.9k to +$369k compared to LP, with an average SP of +$52.4k over asking.
Swipe through our IG post to see what houses are selling for in El Sereno:
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