Here are four of the common pricing categories created in the market as Del Mar, Solana Beach
and Carmel Valley seller’s and their agents price homes for sale. Each category includes some
comments on why you should or should not want to fall into that group.
1. Clearly Overpriced:
Real estate agents know that every seller wants to realize the most amount of money they
can for their home. When more than one agent is competing for a listing they may seek to win
the battle by overinflating the value of your home. This is done far too often, with some homes
priced 10-20% over their true market value.This is not in your best interest because, in most
cases, the market won’t be fooled. As a result, your home could languish on the market for
months, leaving you with a couple of important drawbacks:
- Your home may be labelled as a “troubled” house by agents, leading to lower than fair market offers.
- The inconvenience of having to constantly have your home in “showing” condition…for nothing. Often these listings expire unsold, forcing you to go through the listing process all over again
2. Somewhat Overpriced:
A percentage of the homes on the market at any point in time are 5-10% overpriced. These
homes will also sit on the market longer than average due normally to one of two factors: either
the sellers believe that their home is really worth this much despite market data (after all, this
issue is emotional), OR the sellers want to create some room for negotiating. In either case this
strategy will cost you in terms of time on the market and ultimate price received.
3. Priced Correctly at Market Value
Some sellers understand that real estate is subject to the influences of supply and demand and
carefully and realistically price their homes based on a thorough analysis of other homes on the
market. These competitively priced homes usually sell within a reasonable time-frame and very
close to the asking price.
4. Priced Below the Fair Market Value
Some sellers are motivated by a quick sale. These homes attract multiple offers and sell
fast – usually in a few days – at, or above, the asking price. In a declining market this can be a
reasonable strategy but if an agent suggests this method make sure that they have your best
interest and stated goals in mind.
When you decide to sell your home,
setting your asking price is one of the most important decisions you will make. Price is often the first thing a buyer sees and many homes are discarded, and not even seen, if they do not feel that they are priced correctly.
Your asking price may be your home’s “first impression”, and a major factor in realizing the
most money you can from your home’s sale so your pricing strategy should not be taken lightly.
Pricing too high can be as costly to a home seller as pricing too low. Taking a look at what
homes in your neighborhood have sold for is only a small part of the process, and this on its own
is not nearly enough to help you make the best decision.
Before you can begin to know what your North County Coastal home is worth, you must do
some research, bearing in mind that an analysis of what homes have recently sold for in your
neighborhood is NOT enough to help you to price your home correctly.
A quick scan up and down the street at the prices of homes that have recently sold provides a
starting point. However, this is not enough on which to base your entire pricing strategy. It is
important for you to understand how buyers look for a home.
Think about how you conducted the house hunting search used to find the home you are now
thinking of selling. You likely did not confine your search to a single neighborhood, but rather
looked at different neighborhoods or towns in order to find a home that best matched your needs
and desires.
Prospective buyers in coastal San Diego viewing your home will conduct their searches in
a similar manner. That means they may be comparing your home to, for example, brand
new homes, 10-20 year old homes, and older homes. They may also consider established
neighborhoods, the middle of town, the suburbs or even country properties. Each home will
have a different look and feel and it’s quite possible that a prospective buyer might consider all
of these variables in their search for a home. This being tha case pricing becomes even more
crucial to making your home stand out from the crowd.
