At any time of year, an effective pricing strategy can be the difference between a home that sells quickly for the desired price and one that languishes on the market for months. No time is this more apparent than at the end of the year, as holidays and family gatherings outweigh the rush of finding and moving into a new home.
While your sellers have already made a great decision by choosing to hire a real estate agent (which can add about $34,000 more to their final sale price), what year-end pricing strategies can you use to position your listing for maximum appeal? Here are 11 ways to improve your chances of a happy new year with a home sale that doesn’t decrease during the calendar year.
The first and best way to increase the curb appeal of your real estate listing is to stick to a tool you already know: comparative market analysis (CMA). It’s good general advice, but it can be easy to overlook as you rush to clear the inventory at the end of the year. This quick and dirty look at what nearby houses are worth (and selling for) can give you a starting point for negotiations.
2. Use price psychology
The psychology of retail prices says that buyers like prices that end in nine or five; this is not necessarily true in real estate. Round numbers sometimes move buyers over the price like a (figurative) fire auction.
On the other hand, some buyers like the look of a smaller number; that’s why the “just below” strategy works (as in, the property is “just below” $300,000 if the price is $299,999). The best way to determine which psychological pricing strategy works in your area is to look at both the offer and closing prices of recently sold homes.
3. Search price
Edit your prices to search for prices. Many buyers prefer a round number and set this as a hard ceiling for any automated alerts or manual searches. Keeping your client’s property below standard standards can ensure that they receive maximum visibility. For example, it can be more profitable to list a property at $495,000 than $501,000, as it allows more potential buyers to see it, even if the overall financial difference is relatively small.
4. Create urgency
When you tag a listing, call it a year-end discount (and mention that it’s not available at New Year’s low prices). These price cuts may appeal to budget-conscious buyers or bargain-seeking investors and can be framed as a limited-time offer.
In addition, the end of the year may find some buyers motivated to invest money from previous house sales to avoid higher taxes; investors may also look for something to reduce their tax burden. Use this “limited time only” strategy to lure those who have personal reasons to buy property quickly.
5. Offer incentives to close quickly
Consider rewarding well-trained buyers who can get to the closing table quickly. You may offer credit toward closing costs or pay certain fees. These opportunities work for people who have an urgent need for housing and those who want to cash in on tax benefits before the end of the year.
6. Update online listings and staging
If property photos don’t reflect the season or current condition of the property, give your online listing a quick update. Take new photos that fit the season, and update your descriptions for any incentives, rewards, or discounts. This can also include tweaks to any stage done to better reflect the homey vibe appropriate for the season.
Posting one quick listing on social media and moving on is easy, but year-end pricing strategies need more attention to be more attractive. Run targeted ads to potential buyers emphasizing the potential benefits of buying before the end of the year.
8. Work with a moving professional
Many families looking to buy a new home stop their search when the school year begins; it’s a lot of work getting the kids out of school and settling into a new schedule when there are only a few weeks of winter break in the middle of the school year.
The solution? Your partner and transportation specialist. These professionals help families (even singles) ease the transition to a new home by checking out moving companies, schools, and shopping centers to help make things go smoothly. They can be a valuable source of leads or information on what potential buyers are currently looking for.
Large companies can sometimes make big changes in the workforce before the end of the year. For others, this is the middle of the financial year, an opportunity to adjust and move employees to different locations. For some, this year-end employee change can help cover other expenses and provide tax benefits in the following year.
Whatever the reason, labor departments can be an excellent place to find buyers; The company may also be willing to invest in company housing for people moving into the area.
10. Buy low quality
A short-term buying rate can encourage undecided buyers, especially if they are hesitant to commit due to high interest rates (or looking at an unfavorable market). Depending on the lender and the seller, this temporary rate can last for several months or years.
11. Don’t panic
Don’t panic as the days go by and the end of the year approaches. Trying to convince your salespeople to take it easy can be tempting, but keeping their needs and goals in mind is important. Some real estate agents are trained to make low prices to sell homes quickly, but this can leave a lot of money on the table for you and your buyers. Think of a different strategy – costing more to highlight potential discounts – will get you off the hook faster? That’s not necessarily true at the end of the year, either.
Take the time to research the current market and hone in on your potential buyer. Price the property according to the CMA, and make sure the photos and descriptions are current. These year-end pricing strategies will position your listing as a solid piece of real estate that meets buyer needs and ensures a happy new year all around.
Luke Babich is the CEO of Clever Real Estate.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
To contact the editor responsible for this piece: [email protected].
Related
Source link
