Common Myths About Pricing

Gregg and Lisa Whitney know that pricing your home can be tricky. Here at Whitney and Associates Real Estate, we see many Sellers price too high initially, and then the home sits on the market. However, it can be very difficult to know what price is too high, and what is too low.

The partnership of Gregg and Lisa Whitney, also known as Whitney and Associates, has a proven, long-term track record of successful real estate sales in the La Jolla, California Real Estate Market. Gregg and Lisa Whitney believe Clients should be educated about pricing and have provided this information so Buyers and Sellers can price their property to the best possible advantage in the current market. When selecting a La Jolla, California Real Estate Agent, keep in mind the following information and answers to frequently asked questions about pricing a home, provided by Gregg and Lisa Whitney.

The Whitneys know there are many misconceptions about pricing that affect the Sellers. This is why pricing requires seasoned and experienced experts like Gregg and Lisa Whitney.

Many people believe that because they put so much into their home, it is now worth more than others on the market. While this may be true, Gregg and Lisa Whitney want you to know that pricing too high initially will cost you in the long run. Your home is most marketable when it is first put onto the market; however homes that are priced too high will be shunned by Buyers who do not want to deal with an unrealistic Buyer, and Agents are unlikely to show an over-priced home. Gregg and Lisa Whitney have seen this happen many times to over-priced listings in the La Jolla, California Real Estate market. Gregg and Lisa Whitney want you to know that after your home has been on the market for some time, even after you lower the price, it will be hard to generate enthusiasm over the sale of your home. Once there is finally a Buyer interested after many price reductions, the price is often discounted even further because of the time it sat on the market.

Gregg and Lisa Whitney believe it is very important to be as objective as possible when selling your home. Your aim is to price your home so it will sell for the most money in the least amount of time. At Whitney and Associates, this is just good business. Although selling quickly makes many people uncomfortable, it is usually homes that sell quickly that sell for the most amount of money.
Typically, a Seller should price within 2.5 to 5 percent of what the ultimate selling price would be. Within this guideline, a home should be priced in accordance with how much price discounting is currently occurring in the area. When there is little discounting, this means that homes are selling close to there listed prices. To determine the probable selling price, you can contact us here at Whitney and Associates and we can complete a comparative market analysis (also known as a CMA). This will provide you with information on properties similar to your own that have sold recently. Often in higher price ranges, the deviation between the list price and the sale price is higher, say ten to fifteen percent.

Although it is important to pay attention to the current market, always remember pricing strategies change with the market. People often make mistakes when the market is on the rise, and yesterday’s comparables are out of date. It can be risky to anticipate appreciation, and instead of under-pricing, you are now over-pricing. However, to protect yourself from this, find a realistic price and expose the listing to the market before you listen to any offers with the help of experts like Gregg and Lisa Whitney. Usually if your price is too low, Buyers may compete in a multiple bid and push the price up.

A Seller must have a different approach in a soft market where prices are on the fall. In this case, it is best to undercut your competition. Again, remember that yesterday’s comparables will be out of date, and often too high for the current market. You do not want to end up continually lowering your price trying to catch up with the declining market values. This is called chasing the market down.

We understand here at Whitney and Associates that pricing your home can be a tricky issue, so if you have any questions or would like more information, feel free to contact us. At Whitney and Associates, we are the right choice for the buying or selling of a home in La, Jolla, California.

Have any questions or like to learn more? Use our handy form on the side of the page to contact Gregg and Lisa Whitney. You will see that we only require your email address. Gregg and Lisa Whitney understand that your privacy is important to you and we respect that. We do not share your information with anyone without your permission.

Gregg and Lisa Whitney realize that you are probably in the information gathering stage of your process, and we want to provide assistance to you in any of your La Jolla, California Real Estate needs. If you would like to talk to Gregg or Lisa Whitney in person, feel free to call Whitney and Associates at our main line at 858-456-3282.

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