Reasons for pricing it right
From the second you sign a listing contract your agent can begin the selling process. Your property is the hottest the minute it hits the market. In Whistler selling homes is a little different, while your new home listing is hot when it comes up for sale, the buyer in most cases does not live in Whistler and needs to be contacted, the buyer will probably want to view the home in person, and if it is a buyers market the urgency will not be there.
If however you price your property bang on and perhaps aggressively, you instill a different type of motivation in the realtor. The agent takes the listing back to their office and shares the excitment with their team, the listing is then put through the listing system and this is where your property hits the open market – the other agents then pass the “Hot Listing” onto their potential buyer. The professional realtor knows a well priced property. This is why in any market homes will sell, motivation determines how fast. Sometimes it does take a little longer, but real estate always sells in any market. We also need to realize certain properties like Phase II here in Whistler are taking much longer to sell, and different methods of marketing and price need to be considered. A well priced, sometimes staged property will breed curiosity.
In each agents data base there are purchasers waiting for the right property to come onto the market. For every dollar you go above the suggested list price, the funnel of buyers or pool of buyers becomes smaller.
How do we know this
As Whistler BC is the market I am active in I will use the Whistler Listing System Statistics to prove.
If we have had less than 10% of our sales above $2,000,000 that would mean 90% of our market is under that price point – or if we have had 214 sales to date in 2010 and 17 have been over $2,000,000 than less than 10% of your buyers are in this price category. If your property’s value was established at $1,750,000 and you want to test the waters at $2,000,000 you potentially could be missing valuable buyers for two reasons.
1. If I can spend $2,000,000 I will look at properties from $1,750,000 – $2,250,000 perhaps – If I view your property along with the other homes at $2,000,000 I will be determining value for my money right there. If your home is not of the Caliber of the competition in that price range you could be creating a negative outcome.
2. If my purchase price is only $1,600,000 – I would still look up to about $1,900,000 thus missing your property all together.
It only makes good business sense to listen to your professionals advice on pricing, we can all list our homes at any price, but only recent sales determine market value. I know people who are in other fields of business that are very real estate savvy – builders of course are always keeping their finger on the pulse of real estate. Everyone loves to talk about real estate.
If you want to sell
Price it right from the day you get started. Clean it up so it sparkles. Make sure there is a marketing plan in place. Stay in touch with your agent and work together. There are really only two reasons a home does not sell, pricing and lack of exposure. What is the disaster I mentioned in the headline…
Following a slow market downward! Agents could use your home as an example of poor pricing techniques.
What alternatives do you have?
OK – you just can’t sign the contract at that lower price – why not make a deal with your agent, and sign in advance a 30 day price reduction. This makes it a win win situation for your agent as well. Make sure you keep informed of all new listings, price reductions and sales around you… when you know a sale has happened find out why the buyer didn’t buy your home, or even worse never looked at your property. But do not forget timing is everything – new listings are the hottest when Just Listed. If you miss the busy tourist season and reduce in late Sept/Oct you very well could have missed your only buyer!
It might be wise to decide the best-selling 1/4 for your particular property while you’re at it.
I can honestly tell you Whistler is not predictable, we have seen a stronger market 3rd and 4th quarters for many of the documented years and yet in many cases 1st quarter has been strong too. Why you ask – good question. Whistler statistics on sales data have been collected since 1998 I have found that each years quarter sales to be all over the board – no particular pattern could be found. The number of sales range from 434 to 1300 a year. In those numbers are pre-construction hotel sales… Pan Pacific, Four Seasons Whistler, First Tracks Lodge and a few others… These properties are recorded when the deals went firm not when the money traded hands. Some of the hotels have hundreds of rooms documented in the data. As the Managing Broker for RE/MAX Sea to Sky Whistler I count every sale – hotel sales whether phase one or two are real people buying real estate in Whistler….
http://bit.ly/9xn8P2 – Pan Pacific Whistler
Sales History Year over Year
1998 – 434
1999 – 781
2000 – 973
2001 – 878
2002 – 1300
2003 – 729
2004 – 696
2005 – 528
2006 – 644
2007 – 942
2008 – 519
2009 – 465
2010 – 214 year to date