I would like you to think about that just for a second. What could it possibly be? Open Houses, Social Media, QR codes, Professional Photography, Video, Newspaper Ads, Fancy Brochures, Post Card Mailings, Wine and Cheese Parties, Talking Signs? ALL of these marketing actives are great for generating showings on a new listing BUT the greatest and MOST important marketing plan ever invented in the history of real estate is ….. PRICE IT RIGHT!
A lot of people don’t realize what happens when a new listing hits the market. At any given time there are buyers and buyer agents in your neighbourhood just waiting for new inventory. They have been looking for months, they are motivated and they are ready to buy right now. When your listing hits the market, it gets immediate attention. Buyer agents see the new listing, emails and phone calls are made to the buyers. THEY WILL COME and if the home is priced right, so will the offers. Done, SOLD, Congratulations! BUT, yes there is a but – what happens if the home is priced WAY above market value?
The buyers will still come and view the home but if the price doesn’t meet the buyers expectations, they go and buy something else. This current crop of buyers are gone and now you have to wait for new buyers to enter the market …. and the home is still over priced. More buyers come and go. Eventually you adjust the price but after 60/90 days on the market, your listing is stale. Buyers will ask why has this home been on the market so long? Eventually after reducing the price, you may sell the home but now it will be for less than market valve. [Did you know that approximately 50% of the listings on the Toronto Real Estate Board don't sell]
If your listing gets stale, re-listing the home will not fix it. You only get one shot at being a fresh HOT NEW LISTING. You NEED to capitalize on that momentum when entering the market. It is crucial to PRICE IT RIGHT in the beginning, not 60 days later. Buyers are savvy. They buy homes, not by a process of selection but by a process of elimination. Don’t get eliminated because your price expectations are unrealistic. It will cost you pain, stress and money in the long run.
Original article written by Bob Roman – August 2013.