Yesterday I discussed some of the ins and outs of property pricing. Today I’d like to continue that discussion, with a particular focus on buyer dynamics as well as on overpricing.
Most buyers and agents aren’t about to make offers on homes that they see as significantly overpriced. Keep in mind that nearly all San Francisco home sales sell within 3 to 5 percent of the last asking price, including any price reductions. Those priced outside that range are typically given the cold shoulder by the market, generating no offers regardless of how great the property may be.
If you price your property properly, it creates a sense of urgency in both the buyer and broker communities, compelling them to respond with strong and clean offers, thereby creating a competitive bidding situation that in turn creates high sales prices.
Now let’s talk about overpricing. This is a waste of time and energy, not to mention the optimum period of buyer and broker attention when a listing first hits the market. What’s more, overpricing your property will actually send attention to competitive listings, which will comparatively look like good deals.
A high-quality agent makes sure a property is properly priced, thereby maximizing its chances to sell at the maximum possible amount.
Dreaming of San Francisco? Cece Blase offers local advice to San Francisco buyers, sellers and owners-- and feeds the dreams of those who wish they could live in Tony Bennett's 'City by the Bay.' Call 415-577-0809 or email cblase@paragon-re.com. www.ceceblase.com
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