As I showed last week, each geographic area and housing category is turning from a sellers market to a buyers market. With this in mind, the home pricing strategy below becomes less useful for home sellers in a buyers market.
I’m talking about the Dutch Auction pricing strategy. Here’s the overview…
this home pricing strategy is a descending-price model. This is where the home seller begins with a high offering price, incrementally reducing the price until a buyer places an offer.
Over my 30-yr career in real estate, this strategy works well in a sellers market, but loses it’s effectiveness in a buyers market. Why?
* The seller is chasing the buyer, instead of the buyer chasing the seller
* It puts the seller in a state of “denial” where they hold on to the perception that the market is stronger than it really is. Sellers lose valuable time with little action on their home, then lose value as they reduce the price more often than they imagined
* The “let’s price it up here and see what happens” mentality is more of a hope and not a sound pricing strategy… and ends up in frustration
* Sellers may not attract as many potential buyers compared to other listing strategies
* It may signal desperation on the part of the seller, giving the impression the property is overpriced or difficult to sell
* Buyers are more educated about local “comps” and neighborhood values today than ever before. Buyers can sniff out a mis-priced property and pass to find one that’s more in-line with the market
In a buyers market, sellers must be one step ahead of their competition. If you follow other sellers, you’ll lose – just like them.
The Best Home Pricing Strategy to Use in 2024
In today’s South Florida real estate market, where inventory is surging, a more effective pricing strategy is to price your home at it’s current value. Nothing higher, nor lower. That means working with your realtor to get clear on recently sold, as well as current listing prices in your specific area. By doing so, you’ll attract more potential buyers and possibly create a bidding war.
It will also attract buyers from the moment it hits the market. This is mission critical in 2024.
And, you won’t have a stale listing that ages from 30, 60, or above 125 days on the market.
This is becoming more common in today’s market. I don’t advise you join this group of home sellers who started with a failed pricing strategy. It’s better to be one step ahead of the market and price your property for today’s market.
As you can see below, buyers have a growing supply of properties to see and seller competition is mounting.
The frenzied market os 2022 is behind us. Use a pricing strategy that fit’s today’s market and win.
[photo above: a gorgeous evening at the Delray ATP Pro Tennis Tournament]
——————————————-
*** Top luxury real estate brands across the US say sustainability is top-of-mind and is one of the biggest themes in the 2024 real estate market. If you’d like to learn more about sustainable real estate and living ideas, I devote an entire section of my website to this and have lots of downloadable goodies for you
*** Having thoughts of living in “Horse Country?” If so, have a look at Wellington. Then scroll to the bottom of that page and click on the link to Wellington International. There’s still time to go enjoy some world-class horse events.
—————————————–
*** Surging Supply – UP 59% Since August 1, ’23 ***
* Last week there were 42.724 available…
* This morning’s Inventory is 43,389 *
… supply is UP 665 units in the last week ***
