Is it possible to sell a home for full list value in our market without losing the opportunity to get the most money?
The truth is, in our current market there are about twice as many sellers as buyers. So any seller must win the race to get an offer at all, then negotiate the highest return.
Remember, competing in the marketplace is just like being graded on the curve. Getting that A+ is based on your performance against the rest of the active listings. With the average home owner entering the market every five years, it's easy to miss that most sellers are afraid of low offers, where the real concern should be about no offers. The common reaction to this concern is to list higher, then make reductions over time to become consistent with the marketplace and receive an offer.
Being inconsistent with the market on Day 1 makes a listing appear less desirable at it's biggest moment of impact on the market.
When the statistics on these approaches are examined, the disparity between list and sale price becomes more likely to be larger the more time a property is on the market.
Put it this way, imagine being a buyer. If a member of our HACK&Co Team were walking you through duplexes in Jesperdale, Spruce Grove and you found the one you love you may feel differently based on how long the property has been listed:
- The property is brand new to the market.
As a buyer, since you like the home and it appears to be well priced compared to other new listings (that start high and reduce) you may be afraid of other buyers. Also, the market hasn't had the chance to get to the property yet because it just came onto the market. What if someone else buys this property?! This concern about other buyers will result in a higher offer to insulate against the risk of losing the home.
- The property has been listed for a couple of months.
As a buyer, since you like the it you may want to make an offer. However, this concern about paying too much on a property others didn't buy will result in making a lower initial offer.
By doing more research in advance, and by earning our clients trust to come to the market at the right price on day one though being transparent, we appear much different than the competition. In fact, the exclusivity of a new listing can be the single most influential factor in the race to an offer that converts very close to list price.
"A huge thank you to our clients for trusting us with their listing, it was a pleasure to help you win."