At any time of the year, an effective pricing strategy can be the difference between a home that sells quickly at the price you want and a home that sits on the market for months. There is no time when this is more apparent than at the end of the year, when holidays and family gatherings overtake the urgency of finding and moving into a new home.
While your sellers have already made a good decision by choosing to use an agent (which can add an additional $34,000 to their final sales price), what year-end pricing strategies can you use to make your listings as attractive as possible? possible to position? Here are 11 ways to increase your chances of a happy new year with home sales that won’t slump as the calendar rolls around.
The first and best way to maximize the appeal of your home listing is to stick with a tool you already know: Comparative Market Analysis (CMA). It’s pretty standard advice, but it can be easy to overlook as you rush to clear out inventory at the end of the year. This quick and dirty look at what nearby homes are listed for (and where they’re being sold) can give you a starting point for discussions.
2. Use price psychology
The psychology of retail prices states that consumers love prices that end in a nine or a five; this is not necessarily the case in real estate. Round numbers sometimes move buyers more than a price that resembles a (metaphorical) fire sale.
On the other hand, some buyers like the look of the smaller number; this is why the “just under” strategy is effective (as in, a property is “just under” $300,000 while the price is $299,999). The best way to determine the psychological pricing strategy that will work in your area is to look at both the supply and closing prices of homes that have recently sold.
3. Price for search
Adjust your prices to the search values. Many buyers choose a round number and set it as a hard ceiling for automated alerts or manual search. Keeping your customers’ properties below the usual level can give them maximum visibility. For example, it can be much more fruitful to market a property for €495,000 rather than €501,000 as it allows more potential buyers to view it, even though the overall financial difference is relatively small.
4. Create urgency
If you’re discounting an offer, call it a year-end discount (and insinuate that it won’t be available at the low prices in the new year). This price reduction may attract price-conscious buyers or investors looking for a deal and can be interpreted as a limited-time offer.
Additionally, some year-end buyers may be motivated to invest the proceeds from a previous home sale to avoid a large tax hit; Investors may also be looking for something that minimizes their tax burden. Use this “limited time only” strategy to bring people to court who have personal reasons to buy a home quickly.
5. Offer incentives for quick closures
Consider rewarding well-qualified buyers who can get to the closing table quickly. You can offer credit for closing costs or specific costs. These options are suitable for people with an urgent need for housing and for people who want to take advantage of tax benefits before the end of the year.
6. Refresh online listings and staging
If property photos do not reflect the season or current condition of the property, update your online listing promptly. Create new photos with photos from the appropriate season and update your descriptions with any incentives, rewards or discounts. This may also include adjustments to any staging done to better reflect a homely atmosphere appropriate to the time of year.
Posting one quick mention on your social media and moving on is easy, but year-end pricing strategies require more thought for maximum appeal. Serve targeted ads to potential buyers that highlight the potential benefits of purchasing before the end of the year.
8. Work with a moving specialist
Many families looking to purchase a new home stop looking when the school year starts; It’s a lot of work to pick kids up from school and settle into a new routine when there are only a few weeks of winter vacation in the middle of the school year.
The solution? Work with a moving specialist. These professionals help families (and even singles) ease the transition to a new home by exploring moving companies, schools and shopping centers to keep things running smoothly. They can be a valuable source of leads or information about what potential buyers are currently looking for.
Large companies can sometimes make significant shifts among employees before the end of the year. For some, this is the middle of the fiscal year, an opportunity to correct course and move employees to other locations. For others, this year-end workforce shift can help offset other expenses and provide tax benefits in the following year.
Whatever the reason, HR departments can be an excellent place to find buyers; the company could also be willing to invest in corporate housing for people moving to the area.
10. Buy the price down
A temporary interest rate buydown can incentivize buyers who are unsure, especially if they’re hesitant to commit because of high interest rates (or if they’re looking for a market that doesn’t favor buyers). Depending on the lender and seller, this temporary rate could last several months or years.
11. Don’t panic
As the days pass and the end of the year approaches, don’t panic. It may be tempting to convince your salespeople to take less, but it’s essential that you keep their needs and goals in mind. Some real estate agents charge too low prices to sell houses quickly, but this can leave a lot of money on the table for you and your buyers. Do you think the opposite strategy – overpricing to emphasize potential discounts – will close faster? That is not necessarily the case at the end of the year.
Take the time to research the current market and reach out to your potential buyer. Price the property according to the CMA and make sure the photos and descriptions are current. These year-end pricing strategies position your listings as a solid piece of real estate that meets the buyer’s needs and ensures a happy new year all around.
Luke Babich is the CEO of Clever Real Estate.
This column does not necessarily reflect the opinion of HousingWire’s editorial staff and its owners.
To contact the editor responsible for this piece: [email protected].
