Selling Your Home in Manhattan Beach CA
If you are planning on selling your home in Manhattan Beach CA there's no question that you want to get the highest price possible.
While there are many things no home owner has control over such as interest rates, the global economy, the political environment and more, there are three things that you can control:
Pricing your home is definitely a strategy that if done correctly will net you the highest price possible but if not handled properly can cost you money.
Historically, home sellers may have listed their home above the most recent sale to "leave room to negotiate" and that was the gold standard for many years. Today we call that aspirational pricing and if you have a unique one off hard to comp property it may make sense to use it. But if your home is easily comped this is the worst strategy because buyers will wait until you lower your price and then offer less than that.
This is the strategy you use to sell your house in 10 days or less with multiple offers over the asking price and extremely seller friendly terms such as "as-is", no termite repairs, buyer waives the appraisal contingency, etc. (For the sake of this discussions, "sell" being defined as opening escrow.)
This approach is not for the feint of heart because you have to be willing to list below what would generally be considered fair market price. The objective with this approach is to generate a lot of traffic at Open Houses, set an offer deadline, and create an "event" (the sale of your home).
Does Event Pricing Work?
Absolutely. In most neighborhoods, over 50% of the listings that sell in the first 15 days sell over the asking price.
But you have to realistic about setting the price below the market perception so that it appears to be the proverbial "deal". With most buyers either walking around with some mobile app or receiving email alerts from real estate agents, or both, the objective is that when they see the listing they think "I need to go and take a look at that one before it is gone". Serious buyers in the market understand that this is often how the game is plated and will even show up to the open house and ask "when are you reviewing offers".
A frequent question sellers ask is what happens if the home doesn't sell at the event pricing. Well truthfully if you price it right, it will sell. But in the event it doesn't just as you can lower the price in the MLS, it can be raised.
How Low Should the Price Be?
Anywhere from 7-10% below where you would like to wind up, would qualify as "event pricing". So if your home should sell for $2.4M and you would like to get $2.5M (remember this article is about selling for the highest price possible, the number you should consider listing at is $2,249,000.
There are some recent studies that indicate starting low can drive the final price proportionally higher than any other strategy because as buyers get involved in the bidding wars they do not wan to miss lose and will pay more than they intended to. Basically the auction strategy.
if you can't quite bring yourself to list your home for 10% under your target price, your next best strategy is to undercut fair market value by 3-5%. Just remember, the longer the listing sits the less likely you are to get your target price.