Welcome to another episode of “What’s Working Now!”
Our market is crazy right now. There’s practically no supply and demand is skyrocketing. It seems like everyone wants to buy a house.
As a seller, how do you get the most money for your home in this kind of market?
You may think that since your house is the only one for sale in your neighborhood, you can price it as high as you want. After all, someone has to buy it if it’s the only home available, right?
Actually, I recommend using pinpoint pricing if you want to get top dollar for your home.
I recently sold a house in North Cleveland Park. The seller wanted to get at least $1.2 million for the home, but I wasn’t sure that buyers would be willing to pay $1.2 million for the home. I told the seller that we should use pinpoint pricing and price the home just under $1.2 million. That way, buyers would be excited about the property and overbid.
Instead of going right to pinpoint pricing, we decided to play with it for a couple of weeks. We sent the house out to my network of 3,500 local real estate agents and 2,000 prospects. We also placed a couple of ads in neighborhood listservs and some local publications. The home was advertised at $1.2 million.
Ultimately, nobody jumped up and expressed interest for the home. At that point, we decided to pinpoint that number in order to get a lot of people in the door and excited about the property.
We put the listing on the MLS at $1.15 million on the first day and the seller wound up accepting an offer of $1.29 million, which is way above that first number we advertised.
Advertising the home at $1.2 million put the home above comparable properties, which is why buyers didn’t make an offer. Once we pinpointed the pricing, the seller was able to net more than they expected in the first place.
Thank you for watching “What’s Working Now!” Stay tuned for our next video, where I’ll go over creative solutions for challenges in today’s market.
P.S. If you’d like to learn more about how to put the most money in your pocket, [CLICK HERE].