Every time we sit down to do a listing presentation in Miami, the whole idea of pricing and chasing the market down comes up. We become unpopular and sometimes the listing is given to an agent that is willing to price that home for higher….. here’s the problem. In a declining real estate market, like the one we are in now, if you need to sell your Miami Beach home, you need to price competitively – no rocket science there. To know that what you get for your home today will not be the same as what you will get 4 or 5 months down the line is hard to grasp, but it’s the truth.
Remember that all home sellers have a pre-conceived notion of what their home is worth and think their home is better than everyone elses, you are not alone there. The most popular pricing strategy is to say, “Let’s price it high now and if we get no showings, we can reduce the price later”. That’s when the race begins, you will find yourself trying to keep up with the competition and will miss a great opportunity to get more money from the start. Also remember that you will not be alone in that race. Take a look at this comprehensive example from a colleague in California that can apply to any real estate market. Chasing the Market Down – Are You Guilty?
“Chasing the Market Down is a very serious situation in today’s real estate market. Many sellers are doing this across the nation. The clear majority of them never sell. The expired, cancelled and withdrawn listings on the MLS reflect far more properties than the Sold’s do. Unless you actually need to sell your home this is not the time to be on the market.”
So if your Miami Home is currently on the market or if you are thinking of selling your Miami Beach Home, listen to Laurie’s advice:
- consider the comparables carefully – get ahead of them
- review them weekly with your REALTOR® – stay ahead of them
- adjust your price to remain competitive – don’t play games
- don’t kid yourself about the actual value of your home – it’s worth what a buyer will pay
- don’t be the next seller guilty of “Chasing the Market Down”.