I had been jotting down notes, preparing to write a post: Selling Tip #2 when I came across this post by Danilo Bogdanovic. Danilo is an agent in Ashburn, VA - but I believe strongly, in this case, your location doesn't matter.
His tip:
Your Asking Price Determines If and When You Sell...Period
goes beyond state lines. It is a timeless tip for Virginia. It is a timeless tip for your Missouri property as well.
Read on, as Price does matter.
Via
Danilo Bogdanovic-Real Estate Consultant -Loudoun and Fairfax County:
Not all sellers understand that their asking price is the ultimate determination of whether they will sell their property or not. Not only does the asking price affect if you'll sell, but when and for how much. The longer it takes you to get to the correct fair market value asking price, the greater your Days On Market are and the more of a negative stigma buyers will have of your property. This can translate into lower offers and ultimately, a lower selling price.
Sure, how well your agent markets the property matters. But even the best agent in the world can't fool today's buyer and a good buyer's agent. Today's buyer has access to way too much information and data to overpay for a property. And a good buyer's agent will provide comps and their personal expertise to even the most uniformed buyer so that they don't make a bad decision and overpay for a property.
If you're wondering how much of an effect getting the asking price right has on if and when your property sells, consider this...
I took a look at the last 30 properties (not including foreclosure/REO or short-sale properties) that have sold (gone under contract) in Loudoun County. Here's what I found:
- These properties went under contract in an average of 25.4 days of their last price change/adjustment
- Some of these properties had been on the market for months, but once they adjusted their price to or below the correct current market value, they sold in less than a month
- Some of these properties went under contract in as little as 4 days and had multiple offers
- Some of the properties that sold were at the $700K mark and a few were over $800K so even the properties in the upper price brackets are selling quickly when priced correctly
No matter how well known your agent is, how good your marketing plan is or how many open houses you hold, it comes down to price.
It takes a good and gutsy agent to be honest and share with you your property's real and accurate market value - no matter how much lower it is than you thought. It's then up to you to listen to them, review the comps and data (aka CMA) and be objective with yourself and the situation. Once you do that and then list your property at a price that reflects today's fair market value and market conditions, you will actually sell it.
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Deb, I remember reading this and thinking, wouldn't it be great if all buyers and sellers understood the market process. I have a property listed now that is being purchased extremely low and the new buyers wants me to sell it quick so he can make a profit. My question to him is "If I had that kind of magic why wouldn't I just sell it quick for that price for the current owner?"
If it's listed for a million doesn't mean it will bring 750,000 tomorrow if you pay 500,000 today. good post to re-blog. cheryl