How to Sell Your Home Faster: The Power of Competitive Pricing - Real Estate Tips

Today I want to talk to you about the current state of the real estate market:

There's 67% more inventory on the market today than there was a year ago at the same time, which is more than before, but we still need way more inventory than we have today. When you start to see listings linger, you need to remember that there are two types of markets: listings that come into the market and sell instantly with multiple offers still happen today, but then you have another group of listings that hits the market but then just lingers.

When you're talking to sellers at a listing appointment, it's important to talk about being competitive or looking at comparable sales data. Comparative versus competitive sales data is a very important concept that most REALTORS never talk about with their seller clients.

A comparative market analysis, or CMA, is what most REALTORS use to determine a home's value compared to recently sold homes in the market area. While it is a valuable tool, it doesn't always necessarily get your home sold. To explain this to a seller, I like to use a fishing analogy:

If you're fishing in the wrong spot, even with the best bait, you cannot catch fish because the fish aren't there. You have to move to where the fish are.

That's where competitive pricing comes into play. We want to put our product, or the seller's house, in front of the most active buyers, generating a frenzy of activity and intense bidding action. To do this, we look at where the hottest markets are and price the home accordingly.

For example, if a home would comparably price out at $515,000, but we know that we could have double the amount of activity at $500,000, we would price the home at $500,000 to generate more activity and push the price higher than $515,000.

It's important to encourage sellers to look at both comparable and competitive pricing to generate more activity and get their home sold. By having this conversation, sellers will appreciate your expertise in the market and view you as different from other realtors who may have come to their house.

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