It was the best of homes, it was the worst of homes… actually they are both really terrific homes at the top of Queen Anne in Seattle.  

One listing agent, two different seller profiles. 

With similar specs and qualities, these two four bed-room homes might have seen similar marketing periods in Seattle’s super-hot real estate market.  I’ll show you how the differing pricing strategy resulted in a longer market time for the first home and higher carrying costs for the sellers. The difference between the two pricing strategies is buyer perception, Home 1 was slightly overpriced at market, whereas Home 2 was “value” priced, causing buyers to jump.

These homes were listed by the same agent, so we can assume that the pricing strategy and advice given to the sellers were similar. A seller’s position on these two strategies can make a huge difference in marketing days.

Home 1, a brick colonial was originally listed for $1,525,000 in May.

Home 2, an oversized Craftsman listed in October for $1,325,000.

Both homes have finished basements, plus three upper levels of living, partial views and updated kitchens.  Home 1 has an extra 3/4 bath and more square footage.  Home 2 has a larger kitchen. Smaller house, more open floor plan.

Going just by dollars per square foot, you could argue that the brick Colonial home has been priced correctly, but as of the third week of October it has been reduced to $1,395,000 and is still on the market after six months.

Home two, the Craftsman, was listed on a wet and rainy October 10th, when the heat of the spring/summer market had decreased. Unlike Home 1, the Craftsman sold over asking in multiple offers, and was pending in four days.

I held the Colonial open this Sunday and the funny thing is, neighbors were coming in to: 

1. See what was wrong with the home 

and

2. To explain to me about the dangers of overpricing.

Many sellers worry about leaving money on the table by underpricing, but in a competitive market, you will always sell at the market price, and in a slow market, you will sell before other homes in your bracket. Of course, seller motivation plays a big role in pricing and there is a lot more contributing to motivation than financial need.

I always recommend “Value” pricing for my sellers. An oftentimes, they listen!

 

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Flowers above Pike Place Market Flowers above Pike Place Market

 

Your UNIQUE Home

Every listing is unique and comes with its own challenges and unique selling points.  As a veteran of selling older homes, I realize the importance of positioning your listing to emphasize the strengths of your beautiful home.

Preparation:

I specialize in staging your home for sale.  Three to six months before selling your home, I will do a walk through to help you determine, what to repair, what to store, what to toss and what to ignore.  We will get a working list of To Do’s, and provide you with a list of the Seattle experts Windermere Brokers have relied on for years to get their sellers homes in the best possible shape before listing.

Product:

Pre-Inspecting your home with a licensed home inspector tells prospective buyers that you are aware of the present condition of your home and any defects, such as an older roof or hot water heater.  The pre-inspection notifies the buyer that you have taken those conditions into account when you priced and marketed your property.  It sends a message that you have nothing to hide, that you are aware of the current condition of your home, and are selling it in that condition.

Pricing:

Despite the warm feelings you have for your home, it is important to recognize that your home is a commodity within the Seattle housing market and the buyer will ultimately determine what your home is worth.  Homes that are priced properly from day one will sell the quickest and sometimes within days of listing.

Homes priced even 5% over market take up to 20% longer to sell, at lower prices.  Overpriced homes often sell significantly under the recommended pricing from the original Market Analysis.  Pricing your home too high even for just a couple of weeks is a proven money loser.

Positioning:

Never a cookie cutter approach to selling your home, I create a unique marketing story that emphasizes your home’s discrete selling points, while acknowledging areas of opportunity and framing them a positive, realistic manner, as part of the marketing.

It is my pleasure to design a custom marketing plan for your home, capitalizing on the broad market coverage Queen Anne Windermere Real Estate offers. To discuss your unique marketing plan call or email me.

A Seattle native, I work throughout the Seattle Area.

Nicole Bailey ~ 510.593.7501

 

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