Debby Nesiba

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Learn Positioning Your Home Is Everything!

Posted On: August 16th, 2021 6:10PM

Did you know that overpricing your house for sale can result in less profit? In this video, I’m going to show you how positioning your home correctly can get you top dollar on your sale. We’ll also examine the importance of market time so you don’t leave any money on the closing table.

What Is Positioning?

Everyone wants to sell their house for top dollar—but you don't do it by overpricing your house. You do it by positioning your house correctly. As a listing agent, one of the top questions I get from sellers is, “Why don't we test out the market and price it high to start?” The truth is that this can actually hurt you.

If you want to make top dollar on your house, you don't price it super high. Rather, you want to position it strategically. But what is positioning? When you're selling a house, you want to position it to attract the most ideal buyer. While you can do this in several ways, the key is to emotionally connect with the ideal buyer for your house while creating some urgency around it. 

The Importance Of Market Time

One of the most important ways of marketing your home for sale is the way you price it. Your pricing is very strategic and is part of your overall marketing plan. When you price your home right, you will ensure you don’t accumulate too much market time and avoid lowball offers. 

When your home first comes on the market, everyone wants to see it; it's a popular commodity. But the longer it sits on the market, the less urgency there is. It’s in the first two weeks that you can create the most buzz around your property. The longer it sits on the market, however, the lower the buzz. 

This is because people will start wondering why someone else hasn’t bought the property yet. What is wrong with it? Is it priced too high? Maybe it's not worth what they're asking for it. Maybe there's some sort of structural problems or inspection issues. 

At the end of the day, nobody wants to buy the house that nobody else wanted to buy. Rather, they want to buy the one that everybody wants to buy. It’s sort of like a new restaurant. When a restaurant first opens, everybody's there waiting in line for hours to get into that restaurant. After a couple of years, that buzz kind of dies down. It’s similar to a new house on the market.

Strategic Pricing

Have you ever wanted something more, especially when it's not available anymore? The longer your house sits on the market, the more negotiating power buyers think they have. Which house do you think has more negotiating room: the one that was just listed, or the one that's been sitting on the market for six months? It’s for these reasons that pricing your house too high at the very beginning can hurt you in the long run. 

My best advice is to price it right at or slightly below market value. I don't create the market, but you have to listen to it. As long as you listen to it, you will make good pricing decisions. Another thing you need to know about pricing properties is how people search for properties online. Pricing is the number one search criteria buyers use when searching online, and these prices tend to be grouped in $25,000 to $50,000 increments.

For example, houses will be listed at $525,000, $550,000, $575,000, and so on. It's extremely important to consider this when determining your list price. If your house is worth $500,000, it would be to your benefit to price it at $499,000 or $500,000 rather than $509,000. By doing so, you'll reach a higher pool of buyers. 

Listing Description And Marketing

Another important way to position your house for sale is in the description. Who does your house appeal to? Who is the most ideal buyer? The words you use to market your property are essential, and you want them to speak directly to the ideal buyer. 

For example, if you're selling an investment property, the remarks should be focused on numbers, cash on cash return, cap rates, net operating income, and gross operating income. If you're selling a single-family home, your remarks are going to be focused on school districts, countertops, local parks, and the lifestyle.

Lastly, an excellent way to position your house for sale is in the marketing. You want to advertise your home in places where your ideal buyers are going to hang out. An aggressive agent will go out and find your buyer, rather than waiting for the buyer to come to you because they listed it on the MLS. With tools like social media, it’s our job to go out and find them before they come to us. So when you're searching for the ideal agent, it’s crucial to find an agent that is actively promoting on social media and out there looking for your buyer.

Getting Top Dollar On Your Sale

I hope this helped you realize the importance of properly positioning your home to get top dollar on your sale. If you're thinking of selling your home anytime soon, please feel free to reach out to me. I would love to sit down with you and come up with a marketing plan for you that targets your ideal buyer.

For more information on all things real estate, don’t forget to subscribe to my channel so you never miss an episode of my show. Stay tuned to see what I feature next!

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