Why being ‘priced right’ is the No. 1 factor when selling a home

Mike Mason

Special to the Village News

Everyone has heard the three most important factors in real estate are “Location, Location, Location,” right? I don’t agree exactly, and I’d like to share my reasons.

Yes, homes for sale in the Temecula and Murrieta valley have one great thing in common: location. However, there is so much more to successfully selling a home in today’s market.

The truth is there are three dynamics that are important – location, condition and price. Of the three, price is the ultimate trump card. Almost all buyers determine their price bracket first, before shopping for the best value within that bracket.

The value of a home is certainly influenced by its location. Build identical homes with identical features in Wine Country and another one French Valley, and the Wine Country home will certainly be worth more, simply because Wine Country is a more desirable area.

Location only affects the value of a home. Price is what sells the home.

It doesn’t matter if a home sits on the shores of the Pacific Ocean, high up in a pristine mountain resort or in the penthouse of a prestigious downtown building, it just won’t sell if it’s not priced right.

There is a buyer for every home. Sometimes it’s difficult to say just what will be the motivating factor as to why a particular buyer buys a particular home. A home in a “good location” will always sell for a fair price. The same reasoning goes for a home in a “bad location,” it will also sell for a fair price, but it just won’t be as high as the same home in a “good location.”

The same can be said for a home in “good condition;” it will sell for a fair price, and a home in “poor condition” will also sell for a fair price; it just won’t be as high as the home in a better condition.

Price remains the trump card. Neither location nor condition will sell a house if it is not priced correctly.

Don’t be that seller looking for that “one buyer” to truly appreciate the house, its sense of style, the current choices of appliances, carpet or one-of-kind bathroom fixtures.

If a home has been on the market for an extended time, provided the home’s conditions have been managed well and it’s been easily available for showings, chances are the home is no longer priced right. Listen to the real estate agent. If a home seller doesn’t have one, they should get one. Don’t let the home just sit there week after week. It will come to a point where buyers will start to avoid the home, thinking something is wrong with it.

When showings stop, don’t blame the real estate agent. When people view a home and no offers come in, chances are a change is needed. Have the market conditions changed? Get input from a real estate agent. After all, the real estate agent works for the seller.

In addition, keep in mind the market will dictate the price not the seller and not the agent. Knowing the competition is critical to effectively pricing a home. The agent should be able to show sellers on paper where the home stacks up to the competition. However, not everyone really gets it by looking at values on a spreadsheet. If this scenario sounds familiar, then consider taking a tour of the neighborhood homes with the real estate agent and preview each comparative home on the market.

Once the seller has a chance to see what money will buy in the current market, it should be simpler to have a better idea of where the home should be priced.

Trust the agent’s pricing strategy, but don’t be afraid to ask questions. Realtors are immersed in the local market. They have a thorough understanding of what buyers will pay for a home and want to work with sellers to price it to sell for the highest price in the shortest amount of time.

Don’t make the mistake of overpricing a home. Remember, it’s not just location and condition; it’s being “priced right” that will sell a home.

Call (951) 296-8887 for free information. Get educated.

For questions regarding available inventory and other real estate matters, contact [email protected]. Mike Mason, Broker/Owner of MASON Real Estate Cal. BRE: 01483044.