Why Is Right Pricing So Important?

What is “right pricing” and why is it so important?

For me, “right pricing” is the research and analysis that goes into identifying a price range and a pricing strategy.

The end result is a specific price that will prompt offers. Too low and the house may sell quickly but at lower price resulting in a lower net at closing. Too high and the house may never sell without one of more price adjustments and then, like the too-low scenario, may generate less cash at closing.

My experience tells me that the right price must be within certain limits to attract offers, and those limits vary with the value of the property and amount of time it has been exposed to the market.

The penalty for overpricing is huge, both in days on market and net at closing, and not to mention the additional emotional stress and the negative impact it can have on many areas of life. No one expects to become the one to catch what I refer to as Seller Fatigue but it will materialize over time, and it can take as little as 30 days.

I dig into the details to be in a position to give my clients real numbers generated from my area of focus (i.e., the higher value resale Walton High School homes in just four elementary schools: East Side, Mount Bethel, Sope Creek and Timber Ridge). This effort is necessary because the MLS search and reporting capabilities don’t provide this micro market detail (which is so important for those in Walton) nor does the firm Keller Williams Realty hires to produce custom stats.

It is also important to understand that the MLS reporting does not always (in fact, most of the time) illustrate the real challenge facing sellers. My SDOM (Seller Days On Market) captures the full number of days the property has been exposed to the market which can be significantly different from the TDOM (Total Days On Market) reported by the MLS due to their restrictive guidelines.

Another must-know, but not reported, is the number of days that transpire from the last price change to when a listing goes under contract and ends with a sale. It is important to have this information as a guide when considering the timing of price changes.

In general, as house value increases, so does the amount of time it takes go under contract (aka, Binding Date). Also interesting is that the data reveals that listings go under contract in less time when the house was first listed for sale with the right price (i.e., price changes were not involved) compared to the elapsed time from the last price change to the Binding Date for those listings incurring price changes.

Price Change Impact 10-31-18 All Price Ranges

Picking the right price is simple, but not easy. The benefits are clearly in favor of getting the price right, right out of the gate! One can be lucky and guess the right price, or improve the odds by hiring a Realtor with hyperlocal market concentration and expertise…Brady Miller, 678-933-7780.

 

 

School Search Matters

Real estate websites offer various search capabilities. Those used by agents are the most robust; however, many standard and semi-automated reporting aggregate data by city, county, or a region referred to as an “area”. Most consumers are limited to searching by map, zip, city or what some may term “neighborhood”. Who knows what goes into the algorithms of the online valuation models such as Zillow’s Zestimate.

The ability to search by school is invaluable because attendance lines don’t follow typical classifications or “natural” boundaries like roadways or rivers.

Here are examples of the dilemma faced when trying to get real estate market information for Walton High School in East Cobb.

  • County is too broad, as it is just 1 of 16 high schools in the Cobb County School District.
  • Zip is better but only about 40% of the homes in 30062, 30067 and 30068 are zoned for Walton
  • MLS Area is worse than using ZIP codes as only about 25% of the homes in Areas 81, 82 and 83 are assigned to Walton.

The Walton High School reputation is a major contributing factor to home prices. Being able to dissect the market by high school is key.

It is our commitment to the area and focus on the higher value Walton High School homes that enables us to personally produce the stats on MillerGroupRealty at the elementary school level for various price ranges.

Contact us when moving comes to mind. We promise you’ll be Moved By The Experience.

Stats 7-31-18 East Cobb High Schools Avg Sales Price

 

False Start

The homeowner who decides to sell their house enters a competition regardless of whether they list For Sale By Owner (FSBO) or with an agent.

In a track meet, an initial false start by one restarts and renews the race for all, but not so in real estate. Placing a For Sale sign in the yard officially enters them in the race but a false start divides the field into those that truly participant (receive offers and close) from those that become spectators (watch the market activity and are left to wonder).

Continue reading “False Start”

What can WHY and ‘Y’ mean to you?

Our WHY is found in our business model, vision, mission, goal and result statements, and it is a simple ‘Y’ that changes the perspective from OUR interest to YOUR best interest. Continue reading “What can WHY and ‘Y’ mean to you?”

The Walton High School Seasonal Trend

Probably not surprising is that the Walton High School seasonal trend has remained fairly consistent with the number of Active Listings hitting lows in the January/February time frame and rising to their highest levels in June/July. (Note the difference in the summer period is about 2x the winter inventory.) Continue reading “The Walton High School Seasonal Trend”

Who To Choose?

How to choose the right agent to sell your home? It’s not easy if you take the decision seriously. When can contacting just one agent be considered a best effort?

The National Association of Realtors (NAR) endeavors to provide insight into this topic via their annual surveys which report fairly consistent answers to: “How did you find your agent? How many agents were contacted before selecting one? What was the most important factor in choosing an agent?” Continue reading “Who To Choose?”

Putting & Pricing

If you have played golf, even if just a little, you have experienced the challenge of getting the ball in the hole. What does putting have to do with pricing? Read on to avoid coming up short; i.e., not selling or selling after months on the market and/or leaving money on the closing table. Continue reading “Putting & Pricing”