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Pricing

The Importance of Intelligent Pricing

The initial listing price of your San Diego home is the most significant factor affecting both the final selling price and the number of days before your home is sold.

As these two charts indicate, 60% of all buyers purchase homes at market value. In addition, the greatest number of buyers will see your home in the 2 1/2 weeks following its entry into the market.

(Please click to enlarge either of the charts.)

This is due to the fact that buyers’ agents are checking the new listings daily, hoping to find the perfect home for their buyer clients. When yours comes on the market and looks like a good fit for a current client, they’ll schedule a showing appointment. Serious buyers are also checking daily, and calling to arrange showings when a new listing looks promising.

And those first showings are critical to your success. If your home is priced at market value, you may very well get offers. And in today’s market you may well get multiple offers, leading to a price slightly over list.

According to a February 2013 report in REALTORmag, San Diego is second only to San Francisco in being a “best market” for home sellers. On average, San Diego homes are selling for 101.3% of list.

But even if your house isn’t “the one” for the first buyers who visit, if it’s priced at market value those agents will be eager to bring other buyers. If it’s over priced, it will go to the bottom of the list.

Sadly, even if you begin incrementally lowering your price and finally reach market value, that initial entry to the market will affect the number of showings you get and your final selling price. One question many buyers ask before seeing a home is “How long has it been on the market?” If that number is too high, they don’t assume that it was first listed too high. Instead, they assume there’s something wrong with the house and don’t want to see it.
 

The result: San Diego Homes listed over market value often sell for under market value.

If you’d like to know the approximate value of your home in today’s market, CLICK HERE for an instant estimate.

Then, for a detailed market analysis and price recommendation call 619-325-4170 or write td@tomdunlap.com. We’ll be happy to view your home in person and recommend a price based on our first-hand knowledge of your San Diego neighborhood and the homes that have sold recently.