Real estate is basically worth what a Buyer will pay for it and that number is always changing (usually gradually over time but sometimes quickly and dramatically). There are many factors that influence real estate values but it basically comes down to supply vs. demand. PRICE IS THE NUMBER ONE ABSOLUTE MOST IMPORTANT FACTOR determining if a home sells or does not sell. End of story, no bones about it. Think about how a Buyer searches for property – their budget is probably the first consideration. If a property has a current market value of $800,000 and it’s listed for $950,000 it’s being marketed to the wrong group of Buyers and will also be compared to other properties that really do have a value of $950,000. Pricing right around the realistic value for a property is usually the best strategy but there are several strategies that work. You need to consider how quickly you want your home to sell – there is nothing wrong with going for the brass ring but you can’t ignore the recent comparable sales in your area and price based only on your hopes, wishes and dreams. That gets you nowhere. Buyers have so much data about comps and when they think a home is priced too high, more often than not, they won’t even make an offer. On top of that, most Buyers are going to get a loan and the property will have to appraise – appraisers usually only consider the past 6 months of sales data (many times only 3 months) which is what you want to focus on when selecting a list price. You also need to consider what else is currently on the market to see what competition you have – ideally you want to be the best house available in your area in a particular price point. We also evaluate where we are listing a property on a price per square foot basis and compare it to recent solds – none of this is an exact science but when carefully analyzing the data clear trends emerge. We made a point of seeing every listing in Ladera Heights. Professional agents do their homework and they understand the always changing market..
It’s important to review what average market time is in the area – this helps you as a Seller understand what to expect. Market time varies greatly from one market to the next and in Ladera Heights some homes are selling with multiple offers in the first week or 2. The MLS recently started displaying cumulative days on market in the listing data so even when a home is listed, withdrawn and re-listed (even with a different agent) it tells us how many days in total it has been listed for sale.
Because Buyers and agents will search in a particular price point – it’s smart to price an $800,000 property at $799,000 rather than $805,000 – otherwise you will potentially not show up when a Buyer searches on the Internet with a maximum price of $800,000.
You have to be very careful when hiring an agent solely based on a high list price they suggest. Many agents use that strategy to entice you to list with them. They want to get you hooked in a listing contract, with the plan to eventually hit you up for price reductions. Even in a robust selling market like we’re in now, a number of properties in Ladera Heights are sitting on the market for months before selling. Most homes will sell within 30 to 45 days when they are priced correctly (many within the first week). If your home has been sitting longer than that and you aren’t getting many requests to show it and no offers a price reduction is may be necessary. If you do have to reduce, make sure it’s significant enough to motivate the buyers.
We have recent sales data for Ladera Heights on another page but we can also email you the data – just send us your address and we can email you the information directly from the MLS.
If you’re thinking about selling, contact us for an accurate market evaluation of your property.
Contact Kevin at (310) 200-4916 or email at firstname.lastname@example.org
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