Crazy to price 15% under the average CMA price of 4 Realtors?\

Asked by Coconuts, United States Wed Nov 28, 2007

Like pulling off a Bandaid quickly, the pain is more easily forgotten if you do it quickly. My goal is to get a contract in less than 2 weeks. Feasible?

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Deborah Madey, Agent, Brick, NJ
Thu Nov 29, 2007
If there are 30 competing homes in your market that are all priced well, you have a lesser chance of capturing a buyer.

If there are 2 competing homes in your market that are priced will, you will have a better chance of captruing a buyer.

After looking at the recent solds (last 60 days, max 90) and compare those price points to solds of 4-6 months ago, look at a pricing trend. In order to come up w/ today's comp value, you have to price for today. If there has been a downward trend in your market, and you price exactly as the comps of 90 days ago, you may need to reduce 5-10% to be "comparable" and then take your "under market" pricing strategy from that number. Your CMA should first adjust for the timeline. Many CMAs do not.

Do not look to current and active properties to set your comp price. If they are overpriced, it will skew your asking price and hurt you. Look to the recent comps first. Adjust for the time line and pricing trends in your area. Now, look at the active listings and your competition. If you price 15% below your comp price as arrived at above, are you going to compete w/ 1, 20, or 200 properties. The greater your competition, the greater price reduction you will need to make in order to shine.

15% may make place you on the leaderboard, or it may not. If you are seriously about selling in 2 wks, you will need to shine brigt enough to create an incentive for the buyers to come now. Buyers are rather complacent and assusmptive in today's market. They assume that there is no rush and the property that might interest them will be there tomorrow and the next day. You have to be aggressive enough in your pricing to provide the incentive of scarcity. You can only be scarce if you are in the mniority.

15% may do it, may not. Consult a local RE Pro and be sure to discuss time line trends as it applies to comp values.

Best of luck

3 votes
Ginger R., Home Seller, Massachusetts
Thu Nov 29, 2007
Coconuts - I think you got some very good advice on pricing below. I would like to add the following suggestion: to sell a house in two weeks, i would try to create an auction like atmosphere without actually holding the auction.
First, determine the below market price with your realtor as outlined below. Sign the listing agreement but don't put it on the market for a couple of days while you get your ducks in a row. Make sure that your house is completely ready to show. Have the realtor prepare all marketing materials and invites to a joint broker/buyer open house. Offer a big, I mean huge, incentive to a buyer broker who brings you a contract within two weeks. This is small potatoes compared to a 15% price cut. Try to get a lot of people in the house at the same time ie the open house. People want what other people want. Seeing so much interest in your home will spark their own interest.
Please let us know what you decide and good luck.
1 vote
Joshua Jarvis, Agent, Duluth, GA
Thu Nov 29, 2007
Depends on the quality of the Realtors and your equity position in the home!

In both cases, you should still come out a winner. I'm not sure about your market, but some markets in Florida, for example, have property that is routinely 10-15% under what "market" is supposed to be.

Based on the information you've provided, I'd say you should sell VERY quickly in most markets.
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1 vote
Brian, , Bourbonnais, IL
Wed Nov 28, 2007
It will help bring interest to your property, and if that is your timeline this strategy will help acheive your goal.
1 vote
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