How to Price Expired Listings Competitively
Fall in the New York City area is a gorgeous time of year. It’s also a hectic time as schools start back in session (and this year, in person) and many lives become busier. This year, a lot of the workforce might also be going back in person or doing a hybrid setup for work. And there are still many buyers looking for a new home. Supply of homes for sale also remains low. This is good news for you if you work with expired listings in Manhattan or Brooklyn. Now is the time to really push those listings to sell. Most likely they will be able to sell this time around, and sell quickly too! However, one of the biggest hurdles you need to tackle is pricing the expired listing. Here are some things to consider when pricing a home competitively.
1. Too low
You might be tempted to price the home on the lower side. Especially since you’re dealing with an expired listing that didn’t sell already. But, the risk there is if you price it on the lower side it can actually make buyers wary. They might wonder what’s wrong with the house and suspect there might be underlying issues. If they’re skeptical already, this might turn them away completely.
Another point here is pricing a home too low decreases its overall value and also works to limit the sellers’ future buying power. Both of these things aren’t positive and won’t get you further referrals to grow your business.
2. Too high
On the other side of the equation, if you price a home too high, you might also find yourself in trouble. If it’s too high for what the home is fairly worth, you might end up pricing out potential buyers. The buyers who could afford a home of this size or with these amenities might not be able to buy this specific home if it’s out of their financial reach. This leads to the house sitting longer on the market. And when a house sits for long, it’s never good. You might feel pressure to then drop the price, which can also be a red flag to potential buyers that’s something wrong. They might wonder why it hasn’t sold and what problems are lurking there in the house.
3. Just right
That’s where this middle ground comes into play. Yes, it’s tricky to get it right, but it’s important not to price a home too low or too high given the sticky situations mentioned above. With home pricing, it’s a bit of a Goldilocks scenario. Too low or too high and buyers get scared away. But just right, now that’s the sweet spot. And a “just right” price doesn’t mean it has to be an exact number. Do your research of the market trends and predictions. See what comparable homes for sale are going for nearby in the same communities. Determine what amenities or extra finishes those homes may have compared to your client’s home. You have the experience and resources available to you as a real estate professional to be able to set a fair but competitive price right there in the middle.
Pricing a home just right will lead to more offers coming in, which in turn means your clients have more options, and could even sell for higher than asking price. It also means the house won’t sit on the market, languishing. You’ll have gained a new client who in turn can help lead you to other new clients and referrals in the future.
*ExpLiMO provides high quality leads on a daily basis and offers a unique opportunity for Manhattan and Brooklyn real estate agents to prospect for expired listing leads and grow their business exponentially.