What Price?


I wish I had a crystal ball to tell sellers of real estate in Palos Verdes what price their home will sell for. There are the obvious variables – location, condition, amenities like views, etc. and the “forgotten” variables like the market perception of the buyers. As we have experienced, the media also plays a large part in the buyer’s mood.

As more and more buyers begin their home search on the Internet, they identify quickly a well priced home. Wouldn’t the seller want to be perceived as well priced when they first put their home on the market as statistics show that a home gets the largest audience/views within the first two weeks of being placed on the market. Otherwise, they risk becoming a stale listing, whittling away at their “high” price and losing potential buyers.

In this market, pricing is key and Realtors and sellers both need to “be brave” and price a home the same or less than the last comparable home that sold. The buyers ultimately set the price (not the seller or Realtor). The failsafe for a price that may be too low is that buyers will recognize the low price and multiple offers will result.

Lew Sichelman in a LA Times article, “To sell home, make sure the pricing is right” has several suggestions for sellers including “sellers need to know how fast properties in their specific market segment ae being sold…how much competition…and market statistics such as absorption rates…inventory…and days on market.” If you want your your home sold quickly, put on a buyer’s hat for a bit when pricing your home. Or you could, in effect, be “buying back” your home for yourself.

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One thought on “What Price?”

  • Gretchen Merrick

    Great article! Crystal balls would be so useful in this business! Sellers need to be reminded not to chase the market down. And it makes it even more difficult when sellers have to compete with short sales and bank-owned listings.

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