On the page “what’s your home worth”, I dabbled into pricing strategy but wanted to drive it home here. When interviewing real estate agents, many sellers simply hire the agents who gave them the highest number. This almost always leads to delayed sales, frustration and eventually price reductions/corrections. So don’t just hire an agent because they gave you the highest selling price. They are probably wrong.
So how should you price your home? Do you price high with plans to negotiate down from that price? Do you price low to drive traffic? Or should you price right on the money? and how do you what is “the money” number? All great questions or thoughts.
The way I look at it, pricing strategy depends on the price point of your home and how much demand there is in the budget.
$1-$999,000 Price Range
In Ocean City, the largest buyer pool is between $600,000 – $750,000. Everyone wants to find their first or second 3 bedroom shore condo in this price range..
If your home falls into the $600-750k range. you have multiple pricing strategies. First option depends on your selling timeline. If your answer is faster the better, I would recommend pricing very reasonably to bring attention to everyone within that budget range. If your home looks a little under priced, to 300 buyers, prepare yourself for a busy weekend! You will have showings lined up around the corner with at least 3-8 offers within the first 5 days. And I guarantee many of those offers will be well above asking price. This is my favorite pricing strategy. It creats a frenzy and pushes people to pay over listing price. Not only do they increase their offer price, buyers close faster and usually increase their earnest money deposits and sometime forego a home inspection buying your house as-is. So selling reasonably also comes with many other perks most people don’t factor in when selling their home.
On the other hand, if you have time to sell and don’t want to settle until after the summer but want to get a head start in July, I would say start a little higher than normal. Because you have extra time to let your Realtor market your home use the additional time to your advantage in finding someone that is willing to pay a higher price than the crowd. I guarantee there is someone at out there but it’s a matter of how long that will take.
Therefore, I tend to price conservatively in this price range. I am rarely the agent who offers potential sellers the highest number. It costs me listings but I firmly believe it is the best attack plan to get you the most money for your home. Turn a lot of heads, create a buzz and sell very quickly receiving multiple offers over asking price. No waiting, hunting for the right buyer. Bring all the buyers to you immediately and choose the best fitting offer.
$999,000-$1,500,000 Price Range
If you own a 4 bedroom or a single in this range, you fit into the second largest buyer pool. It isn’t the most affordable but fits the largest category for homeowners looking to upgrade their current OC home. Because this is often OC homeowners’ second purchase, buyer’s tend to be a little more calculated. They have a number is mind they need to sell for and how much they can afford spending. So in order to make this sale work for them, they must be a little more disciplined.
Therefore, I recommend pricing just above or right at the expected/comparable selling price. Do not add an extra $100,000 to the price hoping to sell for more. You are only going to drive buyers away because they are more educated and know you are over priced and over stretching. Instead, know what other homes have sold for within the last 6-12 months and price $10-25k over that number. This way, you aren’t selling yourself short, but you know it is still within the reasonable budget for most potential buyers.
$1,500,000-$2,500,000 Price Range
You are now located in a highly educated, less impulsive buyer pool. With that said, you cannot bullshit your way through a high listing price expecting tons of showings within the first week of listing. You have to be prepared to list where you feel comfortable selling for without getting too greedy. Either way, expect it to take some time finding the right buyer. It can take anywhere from a couple weeks to 4 months to find the right buyer. Because finding the right buyer is going to take time, pricing is a little more relaxed. You do not necessarily have to listing price narrowed to the exact number. I tell my clients, to list where you think is fair to sell the home. Not necessarily where you wish you could sell for but what you think is fair. I can give you a range but this is where having the right agent and marketing crew is key. Because comparable sales properties are a little fewer in this range, it become my job to sell your home. It is much more imperative to sell the home by highlighting it’s best features and convince buyer’s it has been made for them. Buying at this level is much less impulsive but more emotional. You have to appeal to the buyer and help them understand spending this amount is the perfect move for their family.
$2,500,000 or > Price Range
You’ve reached the most selective buyers of Ocean City. They are more educated and experienced homebuyers compared other budgets and price ranges. If you plan to list your home for more than $2,000,000, hiring the right agent is imperative. A luxury sales agent is the one who will make your home look luxurious and exclusive to the right buyer. By creating this exclusivity, you are able to draw in buyers who are looking for a private oasis. Similar to the previous price range, it is less about the exact listing price but how you can appeal to the buyers needs creating a sense of excitement for a unique and private home made for them. I am not saying if you make it feel like the “Bat Cave” you can sell for $25 million. But if comparable homes have sold for $2.5 mil and you want to sell for $3, it’s up to your agent and their marketing team to make that home look like a $3mil home. If they can create excitement and value to the right client, it will sell.