Did you know that you don’t get top dollar on your home sale by pricing it too high? In this episode of Aloha Oahu, I’m going to show you the importance of market time and positioning when selling your home. I’ll explain everything from strategic pricing to social media advertising so you can get the most money for your sale.
The Importance Of Positioning
A common conversation I have when listing a property with sellers is that they want to test the market. Their idea is to start their listings at a higher price, often above market value. However, this can actually hurt you. If you want to sell your home for top dollar, pricing high is not how you do it. Instead, you do it by pricing it strategically.
When we sell a property, we need to properly position it for the most ideal buyer for your home. There are several ways we can do this. For example, when you go to a store and buy something on the shelf, you take into account its packaging, its pricing, and the current sale offer. It's no different in real estate. People who are shopping for a home are going to do the same thing.
Potential buyers want to make sure the house looks good, that it's well maintained, and it’s priced correctly. They also want to be sure it's not listed for more than it's worth. Remember, the market will determine its value.
The most important part of marketing your home for sale is the way in which you price it. We call this pricing method positioning. Your pricing is very strategic and is part of your overall marketing plan. Pricing your home right will eliminate accumulating too much market time and inviting those lowball offers. It also creates a sense of urgency.
Creating A Buzz
The key is emotionally connecting your property to that ideal buyer while simultaneously creating an urgency around it. When a new home comes on the market, it gets a lot of interest. This means your best chance of selling it for top dollar is going to be within the first two weeks on the market—because nobody likes losing out. If a buyer thinks somebody else might get the home first, they’ll want it even more.
It's this buzz that creates an urgency amongst buyers. They know that new listings get a lot of traction. If it's a good deal, then it's going to go fast. This is why it's important to price your home correctly from the beginning. You want to take advantage of the early buzz that a new listing generates.
People tend to want things they can't have. It's no different in real estate. Have you ever wanted something more after it was no longer available? As your listing sits on the market, buyers begin to assume they have more room to negotiate. After 30 days of being on the market, the listing gets stale and lower offers are presented.
If you were the buyer, which house would you be more likely to negotiate on? The one that sat on the market for six months, or the one that just hit the market? It's for reasons like this that pricing your house too high at the beginning can hurt you in the long run. My best advice is to price it correctly from the very beginning. Remember, we don't create the market, we just have to adjust to it.
Another thing you need to know about pricing is how people search for properties online. Price is the number one criteria buyers search for online, and they tend to be grouped in $100,000 increments. For example, buyers will search in groups such as up to $1.3 million, up to $1.5 million, up to $2 million, and so on. You want to take this into consideration when determining your initial list price.
Is it worth listing your property at $2.1 million or $1.9 million? Probably $1.9 million, because there will be more buyers who are searching up to the $2 million mark. Your listing will thus receive more attention at that price point. All other amounts work the same way. Every time we have to do a price change, you will target a new pool of potential buyers who may not have previously seen your listing.
Appealing To Your Ideal Buyer
The second way to position your house for sale is in its description. Who does your home appeal to and who is the most ideal buyer for it? We call this your avatar. The remarks you use to market a property are essential, and it's important that we speak directly to your most ideal buyer.
For example, if you're selling an investment property, the remarks should be focused on numbers, cash on return, net operating income, gross operating income, and cap rates. However, if you're going to be selling a single-family home, the remarks would talk more about the layout of the kitchen, whether it has a pool or a covered Lanai, and how close it is to the beach. These comments, more focused on lifestyle, should appeal directly to your ideal buyer.
The third way to position your house for sale is in its marketing. You want to advertise your home in places where your ideal buyer is going to hang out. Sometimes that's on social media, while other times it's in a high-end magazine. An aggressive agent will chase your buyer versus just placing a sign in the yard and listing it on the MLS. With social media, your agent can really zero in and market your property towards the ideal buyer avatar instead of waiting around for them to come to you.
Getting You Top Dollar
I hope this helps you better understand the importance of the way you position your property for sale. Marketing plays a key role in getting top dollar for your home. If that's your goal, I help people just like you sell their properties every day, and I would be happy to assist you. Of course, there are many details here we have not covered, but I can answer any further questions you may have.
Make sure to reach out to me and I’d be happy to help! You can also subscribe to my channel for more information on Oahu living. Make sure to stayed tuned to the next episode of Aloha Oahu to see what I feature next!