Tag Archives: How to price your house today

Pricing a house in a dead market

I’m in possession of a document entitled, “10 Best-Kept Secrets for Selling Your Home”. The author is unattributed but I believe I’ve either seen it or something similar penned by Barbara Corcoran, who knows everything there is to know about selling NYC real estate and by extension, NYC types who end up buying in Greenwich. Regardless, the writer’s top secret is absolutely terriffic.

Pricing it right.

Find out what your home is worth, then shave 15 to 20 percent off the price. You’ll be stampeded by buyers with multiple bids – even in the worst of markets – and they’ll bid up the price over what it’s worth. It takes real courage and most sellers just don’t want to risk it, but it’s the single best strategy to sell a home in today’s market.”

I like this idea because right now the biggest problem facing sellers is motivating a buyer to commit. Buyers feel, with good reason, that prices are dropping and there is no urgency to buy now when things will be cheaper in a few months. But most buyers are actually ready to buy, so if a house comes on that is a genuine bargain – not something marked 20% off some imaginary price stuck on three years ago – they will be interested. I know that, if I saw such a listing come on I would immediately send it to all of my buyers in its price range and tell them that it was an excellent value. Multiply my reaction by 100 other agents, and it’s easy to see why your house would be the center of attention in the real estate world. Hey – it’s got to be better than what’s happening with most listings now, where the seller takes his (inflated) value of what his house is worth, adds maybe 15% to cover negotiating room, commissions and taxes, then puts it on the market and is totally ignored. What have you got to lose?

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