Real Estate Market Analysis- Let’s Talk Pricing
As I do at least once each month, I review stats of the communities that I serve. Myers Park is one that I’ve pulled since I first began in the real estate business. It’s one of the largest communities in the city and oftentimes, if you’re thinking of moving to Charlotte, you will hear or read at least one article about one of our most popular historic communities. We show in the community to at least one client weekly. So, knowing the data points truly helps us be able to share the knowledge with our clients…and the community when asked or when sharing on our websites or newsletters.
Today’s market analysis prompted me to share some valuable information as a follow-up to that report. The basics of home selling begins with the knowledge that there are THREE key factors that impact the sale of your home:
Location is something that we have in Myers Park – a fabulous, walkable community, in close proximity to Uptown and truly, everything Charlotte.
Condition is something that you, as a home seller, have either decided to address or not. Perhaps your home has been totally renovated in the past 5 years or you’ve done major updating (new appliances, new countertops, cabinets, flooring, etc.). An experienced Realtor® can guide you in the preparation of your home for the market. Once you have your home’s condition tweaked, if needed, you have one final major decision…price.
Now, let’s talk pricing! Pricing does NOT take into consideration how much you love your home or all of the memories you created there! Pricing is an ART and pricing is a non-emotional decision YOU, as a seller must make. Three major tips on that:
- Agents are notorious for telling sellers what they think you want to hear when it comes to pricing. “Hmm…value is $2M so, if I suggest a $2.5M price, they’ll hire me” is a well-known trick/ploy in our industry. When you see the breakdown below, you’ll see that sellers were not educated on pricing OR sellers made decisions with their hearts and not their heads! Bear in mind, this is a business decision!
- When you do price your home higher than market value, you will sell for less than market value when you do finally sell. Why? Because days on the market impacts sales price. The longer your home is on the market, the lower your sales price is going to be – another detrimental phenomenon in our business.
- REMEMBER: If you prefer the marketing of the agent who gives you the realistic price, approach him/her about tweaking the price. YOU, as a seller, make the decision on pricing when you work with me. MY responsibility is to market your home like there’s no tomorrow, procure a buyer for you and negotiate the best price possible for your home – YOU set the price.
So, when you interview several agents, don’t just ‘trust’ the one with the suggested highest sales price. Ask for data to support that elevated price…and review that data with them. Ask yourself ALL of these questions:
- Are the homes that the agent used as comparables within 1 mile of your home?
- Are they similar in build?
- Were they built about the same year?
- Did they compare apples-to-apples or apples-to-oranges? (Ranch homes do not compare to 2-story homes and vice versa.)
- Are they similar in upgrades/finishes?
- Were they sold within the past 180 days?
ANOTHER REMINDER: Your home is going to have to appraise unless you are only going to accept only CASH BUYERS – and oftentimes cash buyers will have an appraisal performed as well. So, if the ‘high’ agent is providing you data from 2+ miles away that sold last year, that is incorrect data and you, will not only sit on the market for an extended period of time, you’ll sell your home for less than what the agent who gave you the correct analysis projected that you would.
Key points in the Myers Park data, year-to-date:
The 85 homes that sold in Myers Park, that sellers never reduced the price of their home while on the market, averaged 34 days on the market with a 96.9% list-to-sales price ratio.
The remaining sales in Myers Park (year-to-date) were initially over-priced and had at least one price reduction. Those sellers averaged 108.7 days on the market and an 89.3% original list-to-sales price ratio.
Here’s the break-down on the over-priced listings in Myers Park that ultimately took price reductions:
- Sellers averaged a 7% price reduction from original list until they achieved the list price that enticed their buyer.
- Sellers final price reduction wound up bringing them a 95.9% final-list-to-sales price.
- Listings that necessitated price reductions sold for LESS than the 7% price reduction they took.
There were also quite a few homes that were on the market for an extended period of time that NEVER took a price reduction, lengthening their days on the market exponentially AND, as in the example below, procuring some sellers less than 70% list-to-sales price ratio.
|Original List Price||List Price||Sales Price||Orig. List/Sales||CDOM|
CDOM = Cumulative Days on the Market
Orig. List/Sales = The percentage of the original price that the homes actually sold for.
More information about pricing your Charlotte home for sale:
Pricing is KEY to a successful sale – and a timely one as well.
Yes, real estate is all about ‘location, location, location’ but, there is nothing that we can change about the location of your home. Pricing and the condition of your home move up to the top of the list for you and we must first get our price in alignment for a successful and timely sale.
*CLHMS – Certified Luxury Home Marketing Specialist (Guild Member)
If you’re thinking of selling your Charlotte home, let’s talk! As with everything in life, preparation is key and I will equip you with what you’ll need to get you, as seamlessly as possible, through the home-selling process. Call or text (704) 491-3310 and let’s get started!
© Debe Maxwell | The Maxwell House Group | CharlotteBroker@icloud.com | Real Estate Market Analysis- Let’s Talk Pricing