In the dynamic realm of Brooklyn and NYC real estate, setting the right price for a property is akin to orchestrating a symphony – it requires precision, finesse, and a deep understanding of the local market. Proper pricing isn’t just about assigning a number; it’s a strategic move that can significantly impact the outcome of a home sale. Let’s delve into the myriad ways in which proper pricing can elevate the selling experience and ensure a lucrative transaction for you as a home seller.

1. More Exposure to the Right Buyers

A well-calibrated price attracts genuine interest from potential buyers actively searching in that price range. This exposure increases the likelihood of connecting with individuals who are not only interested but also financially capable of making a serious offer on your property.

2. Attract Higher Offers

Setting the right price sets the stage for a competitive bidding environment. Buyers who perceive value in the property are more likely to present higher offers, driving up the overall selling price. When you price in the sweet spot, it usually leads to more than one offer and that competition is what you need in order to drive a price up. If the price is too high, you lose leverage because you have to work with whatever offer you end up getting and many times it can be low offers.

3. Better Response to Advertising

Proper pricing aligns with market expectations, making the property more appealing in advertising efforts. This resonance enhances the response to marketing campaigns, drawing in potential buyers who recognize the property’s worth and value. In our industry we have a saying, Price + Condition = Value. In other words, if your price properly reflects the condition of the home, you are offering good value. Buyers these days are very educated so when they see a property that is priced well given the condition it’s in, they move quickly to try and get in, make an offer, etc.

4. Attracts Cleaner Financing

A well-priced property is more likely to attract buyers with secure financing. This not only streamlines the transaction process but also reduces the risk of deals falling through due to financial complications. Similar to #2, when you price too high you are left in a less desirable position because you have to work with whatever offer(s) you get. So if you only get one offer that has a low down payment and/or less desirable terms, you have tow work with it. On the other hand, when you price well, you usually get more offers and that gives you more options in terms of buyers, financial qualifications, terms, etc.

5. Avoids Home Becoming Stale

Homes that linger on the market often acquire a stigma of staleness. Proper pricing mitigates this risk by positioning the property competitively from the start, preventing it from languishing in the market. We tell all of our seller clients, we’ll know right away if we’re priced well because the phone will ring and we’ll start getting requests for showings & viewings. If after the first few weeks you don’t have good activity, then that is usually a clear sign that you’re not in the sweet spot. If this happens to you, you want to make sure that you make an adjustment quickly so that you don’t end up becoming a stale listing. In our experience, a listing can start to look stale after 60 days.

6. More Agents Will Bring Their Buyers

Brooklyn real estate agents are crucial conduits between sellers and buyers. A correctly priced property incentivizes more agents to show it to their clients, widening the pool of potential buyers and increasing the chances of a swift sale. This goes right in line with the knowledge and information that buyers have access to. Agents are “in the market” so they usually know right away if a property is priced right. When a property is priced well, they’ll tell their buyers that they have to move quickly and go see it asap. they also tell them if they expect multiple offers on it or not. On the other hand, if a property is priced too high, a good buyer’s agent will tell their buyers that it’s not worth seeing (because it’s overpriced), or they’ll tell their buyers that they can negotiate hard since they’ll most likely be the only offer on the table.

7. Better Chance of a Clean Appraisal

An appraisal that aligns with the asking price facilitates a smoother transaction. Proper pricing ensures that the property’s value is justifiable in the eyes of both buyers and appraisers, reducing the likelihood of hiccups during the appraisal process. We have another saying in our business that goes like this, “We have to sell the home twice, once to the buyer, and once to the appraiser.” In other words, the first hurdle is finding a buyer that is willing to pay an acceptable price for your property. The next hurdle is making sure that it can appraise at that price. When a property is priced right, it is priced within the realm of recent comps which means that it should have no problem appraising. On the other hand, when a property is overpriced, it has more risk of under appraising because there is a higher likelihood that the house was priced over what the recent comps sold for.

8. Quicker Sale with Less Inconvenience

Time is often of the essence in real estate transactions. A well-priced property typically spends less time on the market, leading to a quicker sale that minimizes inconvenience for the seller. Again, this ties into the concept of becoming a stale listing. Ultimately, when you price right, you attract the right buyers and agents immediately and that usually leads to a contract within the first 30 days. On the other hand, if you price too high, it takes longer to find the sweet spot, and that leads to longer days on market. if you wait to long to make the necessary adjustments, then that can lead to even longer days on market. We’ve seen this many times in the past.

9. Ultimately More Money to the Seller

The culmination of these factors is a transaction that yields maximum financial benefit (i.e. net profit) for the seller. From attracting the right buyers to fostering a competitive environment, proper pricing is the linchpin for securing the best possible deal. What we tell all of our sellers is that we want to price in the sweet spot. That means not under pricing where we leave money on the table, and not overpricing where we end up losing out on potential buyers. When you price in the sweet spot, you get activity, showings, and offers. When you price too high, you usually get little to no activity, and you usually don’t get any offers. If you list your property and don’t get any activity or showings in the first few weeks, that is usually a sign that you’re out of the market. The goal is to price right and be in the sweet spot so that you can maximize your net profit. A good agent will be able to guide you through this process 🙂

The value of proper pricing in real estate can’t be overstated. It’s not merely a number; it is a strategic decision that influences every facet of the Brooklyn home selling process. Sellers who invest the time and effort into understanding the market dynamics with their agent and setting a precise price position themselves for a successful and lucrative real estate journey.