San Diego Real Estate Market Positioning
Positioning your Home Amongst the Competition
A property that is positioned well amongst its competition will always sell quicker and will net the seller a higher sales price.
Research shows the first 30 days of a new listing is the most important period. If the property is positioned well, there will be a flurry of activity and the offers will often be at very close to the list price. In some cases, we sell properties above the listed price because we are able to draw enough traffic to create an environment of excitement and urgency with buyers who are making offers.
Do you want to have your property “on the market” or “in the market”? Let Dannecker & Associates lead you to success with the sale of your property.
Our market research positioning results in owners selling their homes faster and for closer to the list price.
A study by the National Association of Realtors shows that homes that sell quicker sell for more. This is why initial market position is crucial. We will set an initial market position for your home that will net you the most money and will get you where you want to go, on-time! Remember, when you sell your home quicker, you also save money on extra mortgage payments, property taxes, insurance, and monthly HOA dues.
Setting the Initial Market Position (sales price)
We always do the research, show you the market absorbtion rates for homes in your price range, study the homes that have achieved success being sold and homes that have failed, which have been on the market for a lengthy period of time. Based on the current trends, relative competition, and your motivation for selling, we set an initial market position to achieve you the maximum profit on the sale of your home.
Benefits of a Well Positioned Home
- Faster Sale
- Less Inconvenience
- Real Estate Agents get excited about selling your property because they know they can
- More Inquiries turn into more showings and more excited buyers
- You receive better offers and often, multiple offers
- The Seller nets more profit from the sale
The Simple Truth About Positioning your Home in the Market
- The property that offers the most value for the least expense will get the attention of the buyers and will receive offers.
- It is best to position your house right at the desired sales price and be firm on negotiations. Building in negotiating room can often deter buyers from making an offer or bring in “lowball” unrealistic offers.
- It is always better to counter or decline low offers than to not receive any offers at all.
- You lose a strong position both mentally and financially when your house is “stale” and has been on the market for a long time. Buyers often think something is “wrong” with the property.
- Overpricing your home will help the competition because agents will show your home first and will then take the buyer to the correctly priced property and show them what a “deal” it is.
- Let’s face it, having potential buyers parade through your home for months on end is no fun at all. Consider the time and energy it takes to prepare your home for showings, keep the property clean, make arrangements to leave while it is being shown, and receive the phone calls to schedule the appointments.
Frequently Asked Questions
Q: Why Do your properties sell so fast? Do you position them too low amongst the competition?
A: Absolutely Not! As a matter of fact, most our listings sell at full price or above. We are professionals and it is our business to know the market and do the research. We present the research to you and come up with an initial market position that we agree upon. Our homes typically sell twice as fast because of our effective marketing strategies. We always do an analysis of the supply of competition in your homes price range, study how fast the market is absorbing the supply and determine a position that will make the property enticing to buyers. Positioning your property ahead of the competition will bring you more buyers, more excitement and more offers.
Q: Couldn’t We Try Listing At Our Price For a Couple of Weeks?
A: If the initial price you want to list at agrees with the market research then the answer is yes. If your price defies all market research, then studies show you will lose time and money.
The majority of buyer activity on a listing occurs in the first 30 days. The busiest period of a new listing is usually day 5 through day 13 because the buyers receive an email from their agent about the new listing on day 1 or 2 and then have to schedule the appointment for a time that works for both them and the seller. If you want the multitude of buyers to come and immediately disagree with you market positioning, you will lose their interest almost immediately. A common attitude with buyers in this situation is that they will wait to see if your home is still on the market in a few months and then maybe they’ll make a lowball offer. Again, you lose…