It’s the question I come across the most during listing consultations. It’s very often the exact question that is posted above:
“John, if offers are going to come in low regardless, why would I price my home aggressively?”
The simple answer is “They don’t anymore.” Pricing is just part of my team’s philosophy of merchandising an owner’s home, and often the most important aspect of that strategy.
It today’s New Jersey real estate market, and Monmouth county in particular, the market has become a seller’s market. By following very simple supply and demand economics, there is little quality inventory on the market, and not astronomical demand, but certainly more demand than the current supply is allotted for. In year’s past, such as 2009-early 2012, there were a ton of homes on the market, but not nearly enough buyer’s to purchase them. Now with interest rates at all-time lows, many buyers who “sat on the sidelines” for the past few years are coming out and looking into the American dream, home ownership.
An aggressive price will get the most amount of this pent-up demand in your property very quickly and that is the sense of merchandising I strive for. Advertising is a Macy’s ad in the weekend newspaper with a picture, saying this Jacket is on sale this week. Merchandising is that BIG RED sign when you walk into the store, that draws the customer to that same jacket, giving the consumer the desire to purchase.
If many buyer’s come in to the home right away, and see other action regarding the home, they will feel the need to get in on the action. It’s simple consumer behavior.
“But John, you still need room to negotiate, don’t you?!” Or “The number we need is right there, so we have no room”
The simple answer is “No, we do not.” When a home is priced at or near market value for the home, the home seller open the opportunities to negotiate to as many buyer’s as possible. At the end of the day, the owner has the final say in the negotiation, and if the offer is not good enough or high enough to get the net proceeds the owner needs from the sale, the answer is a simple “No”.
Motivated buyer’s love motivated seller’s and if the asking price is either at or close to true market value for the home, buyer’s today realize they will have to offer what the owner is asking, or open themselves to getting that “no” as an answer to their offer.
Pricing is just a part of a total package in getting your home sold for the highest possible market value, condition and marketing are the other two. To find out about my affordable listing service, click here. Or simply give me a call/text at (732) 546-6177.
John Natale Jr.
Keller Williams Realty
Cell: (732) 546-6177