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The Importance Of Market Time
Dated: June 30 2020
Everyone wants to sell their house for top dollar, but you don't do it by pricing it high, you do it by limiting your market time and positioning your house correctly! Hi, I'm Renee Heintz with another episode of LAX RE-Vealed, and today I'm going to show you the importance of market time and positioning on selling your property for top dollar.
One of the most common questions I get when listing a property is about testing the market to start to a higher price or pricing above market value. The truth is that this can actually hurt you. The key to selling your house is how you position it to the public, so let me explain.
When we sell a house we need to properly position it to the most ideal buyer for your home. When you go to a store and buy something off the shelf, you take into account it’s packaging, pricing, and current offer; is it on sale or not?
It’s no different in real estate. This is a largely emotional decision so good marketers know this. The key is emotionally connecting your home to its ideal buyer and then simultaneously creating urgency around it.
The most important of the 3 is pricing positioning. What your home is listed at is very strategic and part of your marketing plan. Pricing your home right will eliminate accumulating too much market time and inviting low all offers, but here’s why:
You'll receive the most amount of traffic and showings for your house in the first two weeks it’s listed. When your home goes on the market, it becomes the "new" listing, and serious buyers will quickly schedule an appointment for viewing "before it's gone."
It's this "buzz" that creates the urgency amongst the buyers because they know that new listings get a lot of traction and that if it's a good deal, it's going to go fast! People tend to want things they can't have, and it's no different in real estate. Have you ever wanted something more because it was no longer available?
As your listing sits on the market buyers, begin to assume they have more negotiation room. After 30 days of being on the market, they have a lot more room, and they will try to negotiate more with you. Which house would you be more likely to negotiate: the one listed for six months or the one that just hit the market?
It is for reasons like this that pricing your house too high at the beginning can hurt you in the long run. Sometimes "testing" the market comes back to haunt you, so my best advice is to price it accordingly with your agent where the price is "positioned" to increase the most amount of activity.
Remember we don't create the market, we can only adjust to it!
Another thing you need to know about pricing positioning is how people search for your property online. Price is the number one criteria buyers search online. Search prices tend to group in $25,000-$50,000 increments.
So for example: People search up to $100,000, $125,000, 150,000, and so on. You want to take this into consideration when determining your initial list price.
Is it worth listing a house at $304,900 or $299,900? Probably $299,900 because there will be more buyers searching up to $300,000 thus more attention on that price point. Every time a price change occurs and your list price changes in a $25,000 increment you will target a new pool of potential buyers who previously were not seeing your property.
The second way to position your house for sale is in its description. Who does your home appeal to and who is the most ideal buyer for it?The remarks used to market a property are essential. It’s important to tell a story of the property so you can speak directly to its most ideal buyer.
For example, If you are selling an investment property the remarks should be focused on numbers. If you are selling a single-family home, the remarks will be talking about school districts, local restaurants, and parks. They are more focused on lifestyle.
You want to speak directly to your ideal buyer.
The third way to position your house for sale is in its marketing. You want to advertise your home in places where your ideal buyer is going to hang out in. An aggressive agent will chase your buyer vs. just placing a sign in the yard and list it on the MLS. For example, with social media, you can really zero in and market towards your ideal buyer.
Your agent should actively be promoting your property on social media and going directly after your ideal buyer vs. waiting around for them to come to you.
I hope this video helped you realize how vital market time is in selling your house. If you need some additional help in determining what your 30-day sale price is, and would like some help doing it the right way, I'm Renee Heintz and thank you for tuning into another episode of LAX Re-Vealed!
I am a full-time real estate agent at Century 21 Affiliated. I am licenced in both WI and MN, so I do business in La Crosse County and surrounding areas. I have been in the real estate business since....
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