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Real Estate Market Analysis- Let’s Talk Pricing

Real Estate Market Analysis- Let’s Talk Pricing

 

Pricing your Charlotte home for saleAs I do at least once each month, I review stats of the communities that I serve. Myers Park is one that I’ve pulled since I first began in the real estate business. It’s one of the largest communities in the city and oftentimes, if you’re thinking of moving to Charlotte, you will hear or read at least one article about one of our most popular historic communities.

 

We show in the community to at least one client weekly. So, knowing the data points truly helps us be able to share the knowledge with our clients…and the community when asked or when sharing on our websites or newsletters.

 

Last week’s market analysis prompted me to share some valuable information as a follow-up to that report. The basics of home selling begins with the knowledge that there are THREE key factors that impact the sale of your home:

1. Location

2. Condition

3. Price


Location
 is something that we have in Myers Park - a fabulous, walkable community, in close proximity to Uptown and truly, everything Charlotte.

 

Condition is something that you, as a home seller, have either decided to address or not. Perhaps your home has been totally renovated in the past 5 years or you’ve done major updating (new appliances, new countertops, cabinets, flooring, etc.). An experienced Realtor® can guide you in the preparation of your home for the market. Once you have your home’s condition tweaked, if needed, you have one final major decision…price.

 

Let's talk pricing your Charlotte home

 

Now, let’s talk pricing!  Pricing does NOT take into consideration how much you love your home or all of the memories you created there! Pricing is an ART and pricing is a non-emotional decision YOU, as a seller must make. Three major tips on that:

1. Agents are notorious for telling sellers what they think you want to hear when it comes to pricing. “Hmm…value is $2M so, if I suggest a $2.5M price, they’ll hire me” is a well-known trick/ploy in our industry. When you see the breakdown below, you’ll see that sellers were not educated on pricing OR sellers made decisions with their hearts and not their heads! Bear in mind, this is a business decision!

2. When you do price your home higher than market value, you will sell for less than market value when you do finally sell. Why? Because days on the market impacts sales price. The longer your home is on the market, the lower your sales price is going to be - another detrimental phenomenon in our business.

3. REMEMBER: If you prefer the marketing of the agent who gives you the realistic price, approach him/her about tweaking the price. YOU, as a seller, make the decision on pricing when you work with me. MY responsibility is to market your home like there’s no tomorrow, procure a buyer for you and negotiate the best price possible for your home - YOU set the price.

 


 


So, when you interview several agents, don’t just ‘trust’ the one with the highest suggested sales price. Ask for data to support that elevated price…and review that data with them. Ask yourself ALL of these questions:

 

Pricing Your Charlotte Home - compare apples to apples, not oranges to applesAre the homes that the agent used as comparables within 1 mile of your home?

•Are they similar in build?

•Were they built about the same year?

•Did they compare apples-to-apples or apples-to-oranges? (Ranch homes do not compare to 2-story homes and vice versa.)

•Are they similar in upgrades/finishes?

•Were they sold within the past 180 days?


ANOTHER REMINDER: Your home is going to have to appraise unless you are only going to accept only CASH BUYERS - and oftentimes cash buyers will have an appraisal performed as well. So, if the ‘high’ agent is providing you data from 2+ miles away that sold last year, that is incorrect data and your home, will not only sit on the market for an extended period of time, you’ll sell your home for less than what the agent who gave you the correct analysis even projected that you would.

Read and Heed!

 

Key points in the Myers Park data, year-to-date:

 

The 85 homes that sold in Myers Park, that sellers never reduced the price of their home while on the market, averaged 34 days on the market with a 96.9% list-to-sales price ratio.

 

The remaining sales in Myers Park (year-to-date) were initially over-priced and had at least one price reduction. Those sellers averaged 108.7 days on the market and an 89.3% original list-to-sales price ratio.

Here’s the break-down on the over-priced listings in Myers Park that ultimately took price reductions:

•Sellers averaged a 7% price reduction from original list price until they achieved the list price that enticed a buyer to present an Offer.

•Sellers' final price reduction wound up bringing them a 95.9% final-list-to-sales price.

Listings that necessitated price reductions sold for LESS than the 7% price reduction they had to take.

*NOTE: New construction was eliminated from the sales data. 

 

 

There were also quite a few homes that were on the market for an extended period of time that NEVER took a price reduction, lengthening their days on the market exponentially AND, as in the example below, procured some sellers less than 70% list-to-sales price ratio.

      

Original List Price       

List Price           

 

Price                  

Orig. List/Sales            

CDOM

$2,700,000.

$2,700,000.

 

$1,725,000.

63.9%

176

$2,800,000.

$2,800,000.

 

$1,650,000.

58.9%

220

 

CDOM = Cumulative Days on the Market
Orig. List/Sales = The percentage of the original price for which the homes ultimately sold.

 


 

More information about pricing your Charlotte home for sale:

 

Pricing Strategies to Sell your Charlotte Home in Any Market

Charlotte Home Seller Tips – Leave The Emotions OUT of the Equation

Critical Point When Listing Your Charlotte Home For Sale – Price

There is a Direct Correlation of Days On The Market With List-to-Sales-Prices

 


 

Pricing is KEY to a successful sale – and a timely one as well. 

Certified Luxury Home Marketing Specialist
Yes, real estate is all about ‘location, location, location’ but, there is nothing that we can change about the location of your home. Pricing and the condition of your home move up to the top of the list for you and we must first get our price in alignment for a successful and timely sale.

 

*CLHMS - Certified Luxury Home Marketing Specialist (Guild Member)

If you’re thinking of selling your Charlotte home, let’s talk! As with everything in life, preparation is key and I will equip you with what you’ll need to get you, as seamlessly as possible, through the home-selling process. Call or text (704) 491-3310 and let’s get started!

Hiring the RIGHT Charlotte Realtor® is critical to your home selling success!

 

© Debe Maxwell | The Maxwell House Group | CharlotteBroker@icloud.com | Real Estate Market Analysis- Let’s Talk Pricing

 

The Maxwell House Group Charlotte NC

 

  Charlotte NC Homes for Sale

 (THE best Charlotte home search available - no kidding!)

Charlotte NC Real Estate Agents 

 

Charlotte CRS Agent


Debe Maxwell, Realtor®/Broker/CRS

RE/MAX Executive

CharlotteBroker@icloud.com
Direct:  (704) 491-3310

 

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Comment balloon 20 commentsDebe Maxwell, CRS • September 02 2019 12:55AM

Comments

Hello Debe - thoroughly understanding a market certainly helps when meeting with clients on a regular basis as you do in Myers Park.  Preparing for market analysis by gathering data and seeing changes(past, present and inklings of future plans) provides credibility.  Your point on appraisals is one worth noting for overly hopeful/optimistic sellers who need to understand the reality of the market.  Emotions may hasten a sale but other factors may enter the scenario.  

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 9 days ago

When I am meeting someone who has an over-inflated price in mind, this data is definitely highlighted for them. Who wants to sell at less than 70% of their list price (as in the examples above)? Be realistic and if you doubt my numbers, get an appraisal yourself! 

Happy Sunday, Michael Jacobs!

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) 9 days ago

Hi Debe,
Excellent post on the perils of over-pricing a home.  It isn't good for anyone, except maybe the ultimate buyer who takes advantage of the sellers exhaustion to finally get the home sold. 

Posted by Carol Williams, Retired Agent / Broker / Property Manager (Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals.) 9 days ago

You've been Featured in the Bananatude.

Posted by Carol Williams, Retired Agent / Broker / Property Manager (Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals.) 9 days ago

Oh, excellent point, Carol Williams! That's one reason buyers watch DOM like hawks - those are the ones that we know have a much higher chance of coming off of the price. They're quite often tired and ready to deal!

And, thank you for the feature! 💋  

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) 9 days ago

Yes, buyers do watch days on market. That wasone of the questions I was asked often: "How long has it been for sale?"

Posted by Carol Williams, Retired Agent / Broker / Property Manager (Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals.) 9 days ago

Exactly! And some sites even list the cumulative DOM so, buyers are keen to that stat.

Happy Sunday, Carol Williams!

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) 9 days ago

Thanks, Debe. Going to a friends house for the season opener for the Seahawks. We play your Panthers on December 15th.

Posted by Carol Williams, Retired Agent / Broker / Property Manager (Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals.) 9 days ago

Watching our game now - I'm SO glad it's football season! Looking forward to playing your Seahawks in December, Carol Williams!

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) 9 days ago

Hey, the Panthers game is on here too. I just tuned in after you mentioned it. 

Posted by Carol Williams, Retired Agent / Broker / Property Manager (Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals.) 9 days ago

Ugh, they're not making a good first-game impression on you, are they, Carol Williams?! 

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) 9 days ago

Sorry about that, Debe.  My Hawks only won by 1 point so that was a nail biter.  I hope they both have a better showing next week.  

Posted by Carol Williams, Retired Agent / Broker / Property Manager (Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals.) 8 days ago

As always, Debe Maxwell, CRS proves she is an expert in the field of Residential Sales in Charlotte, NC. When it comes to marketing and explaining how she does it, she is generous in sharing and answering any questions others may have. When commenting on other agents blog posts, respectfully, she never talks about herself but always complimentary if she agrees. Debe is someone you can count on, and that's the truth!

Posted by Patricia Feager, MBA, CRS, GRI,MRP, Selling Homes Changing Lives (DFW FINE PROPERTIES) 8 days ago

Oh dear! It was a slow start and I do believe that had they started out PLAYING the first half, they could have won! 

Congrats on your Hawks win - 1 point is all it takes to win, Carol Williams!!

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) 8 days ago

Good morning Debe Maxwell, CRS - this is certainly dramatic.  Some people say don't confuse me with the facts this is what I want!

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) 3 days ago

Exactly, Debe. Yet so many sellers have an idea that somehow their home is the "special" one and therefore, should sell for a higher price. It's just not so, being objective and realistic about pricing is so important and lost time on the market as you point out, is a detriment. D 

Posted by Debb Janes EcoBroker and Bernie Stea JD, REALTORS® in Clark County, WA (ViewHomes of Clark County - Nature As Neighbors) 3 days ago

Hi Debe:

Being unrealistic about pricing never works, even when inventory is low and demand is high. And buyers are so much more savvy these days and they watch what's going on...and many have a good agent to likewise educate them!

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (Solutions Real Estate ) 3 days ago

Good evening Debe Maxwell, CRS ,

 Facts are facts and you have spelled out what happens when a seller is unrealistic about their list price! It takes longer to sell and sells for less money than homes listed at market price.

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.750.6899) 3 days ago

Great post Debe. These concepts are sooooo hard to get sellers to understand! I worked years ago for a broker who said one thing I always remember “ I don’t care what you think it’s worth, I don’t care what I think it’s worth, I don’t care what you need to get out of it, it’s worth what a buyer will give you” 

Posted by Tom Bailey (Margaret Rudd & Associates Inc.) about 21 hours ago

"What the market will bear" is all that counts. I've lost count of the agents I've known who "bought" their listings by promising unrealistic selling prices.

Posted by Marte Cliff, Your real estate writer (Marte Cliff Copywriting) about 20 hours ago

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