It was the best of homes, it was the worst of homes… actually they are both really terrific homes at the top of Seattle’s Queen Anne neighborhood.
One listing agent, two different seller profiles.
With similar specs and qualities, these two four bed-room homes might have seen similar marketing periods in Seattle’s super-hot real estate market. I’ll show you how the differing pricing strategy resulted in a longer market time for the first home and higher carrying costs for the sellers. The difference between the two pricing strategies is buyer perception, Home 1 was slightly overpriced at market date, whereas Home 2 was “value” priced, causing buyers to jump.
These homes were listed by the same agent, so we can assume that the pricing strategy and advice given to the sellers were similar. A seller’s position on these two strategies can make a huge difference in marketing days.
Home 1, a brick colonial was originally listed for $1,525,000 in May.
Home 2, an oversized Craftsman listed in October for $1,325,000.
Both homes have finished basements, plus three upper levels of living, partial views and updated kitchens. Home 1 has an extra 3/4 bath and more square footage. Home 2 has a larger kitchen. Smaller house, more open floor plan.
Going just by dollars per square foot, you could argue that the brick Colonial home has been priced correctly, but as of the third week of October it has been reduced to $1,395,000 and is still on the market after six months.
Home two, the Craftsman, was listed on a wet and rainy October 10th, when the heat of the spring/summer market had decreased. Unlike Home 1, the Craftsman sold over asking in multiple offers and was pending in four days.
I held the Colonial open this Sunday and the funny thing is, neighbors were coming in to:
1. See what was wrong with the home
2. To explain to me about the dangers of overpricing.
Many sellers worry about leaving money on the table by underpricing, but in a competitive market, you will always sell at the market price, and in a slow market, you will sell before other homes in your bracket. Of course, seller motivation plays a big role in pricing and there is a lot more contributing to motivation than financial need.
I always recommend “Value” pricing for my sellers. An oftentimes, they listen!