Today I taught a class at our brokerage about pricing when selling a home in Miami. It’s a long topic and one that could have lasted several additional hours. Pricing is more of art, not a science as many factors come into play in our local real estate market. Those can range from local market conditions to the actual seller motivation.
Here Are My Top 4 Pricing Tips When Selling a Home in Miami
1. Set the price based on today’s market value, not based on what sales were last year or the year before.
Real estate markets change, supply and demand changes, ultimately this affects pricing. It’s important to remember that buyers will only pay what a property is worth today. Looking backward can really skew the correct perspective and looking forward is a gamble.
2. Setting a price based on what you need to do with the money after you sell.
For instance, wanting to sell for “x” amount because you want to a buy another home that costs “x” amount. Sometimes sellers get caught up in what they are going to do with the money after they sell and they set their mind to the pricing based on this.
On one hand, of course, you should plan what to do with the money after the sale. On the other hand, buyers are only going to pay the market value of the home.
You just have to keep this in mind.
3. Don’t test the market.
Pricing high at the beginning of the listing period to “test the market” can be a slow death of frustration and annoyance.
The most critical time in the listing’s life is at the beginning. This is when the listing will hit everyone’s email and the online searches. Serious buyers have a budget, a preapproval letter and they know what homes are worth. They may like your home, but if it’s priced too high, they won’t come look at it. & No, buyers rarely stop by just to see it and then make offers. In our area, the list to sales price is often not that big of a difference. We don’t want to drive buyers away, we want to attract buyers to get offers.
Most buyers start online, weed out what’s realistic and what’s not and then start previewing in person. It’s said that on average most buyers look at 10 homes. If you price too high, you are going to miss everyone looking in the correct pricing bracket.
4. How can we be sure the price you are recommending is the right price?
Pricing is based on location, condition and comparable sales of what’s on the market, what’s under contract and what recently sold.
We like to compare it to purchasing stock. Have you ever bought a stock? How do you know what’s it’s worth? When you are selling a stock, you check the market prices. You know you may have paid more for it, but the market doesn’t care.
Real estate is ultimately a product, “the market – buyers” determine what your home is worth. When selling a Miami home in today’s market, it’s more important than ever to price correctly.
If you have more questions about pricing your home to sell in today’s market text or call Jamey at 305-793-8965.