Overpricing Your Condo Isn’t Necessary
November 11, 2022, by Jessica
HERE’S WHY YOU SHOULDN’T OVERPRICE YOUR CONDO
Overpricing your condo isn’t necessary
and never has been! Although I understand
why you think using an overpricing
strategy is a good idea.
After all, we’ve been in a “seller’s” market
for a long time, and some sellers have accomplished
this unusual feat and made a “king’s ransom” in the process!
But then, all good things come to an end eventually.
Do they really, though? What if there’s a more
effective way of doing things that produce
the same results unbeknownst to you?
I’ll gladly tell you about it, but first, let’s address how
the “business” of overpricing your condo “got its wings,” and
it has nothing to do with Red Bull Energy Drink. (Did you catch my little joke?)
WHAT HAD HAPPENED WAS
Due to the low-interest rates, an influx of cash buyers,
first-time condo buyers, and a severely limited housing
supply, buyers had to pay way more than they should
have for a roof over their heads!
I’m sure it was no fun for you to watch other over-excited sellers
“follow the yellow brick road” to the bank to deposit their newfound
wealth. Now you want in on that action – I GET IT!!
You’re not alone in that thought process because, according to a recent
survey from the listing site Realtor.com, 94% of sellers expect their home
to sell for MORE than they paid. This is a common and usually accurate
expectation to have, by the way.
HMMM … THIS REEKS OF MAYHEM
Amazingly, a full third of respondents said they plan to LIST their home
for more than they thought it was worth!
Back in the day, before the invention of the internet, overpricing your condo
was an acceptable industry practice, especially since consumers didn’t
have access to past sales information and had only to rely on what they
were told by their real estate professional.
The reason for overpricing their property back then was so that the seller
would have room to negotiate a fair price, but somehow the sound of
that reeks of mayhem!
THEN SOMEBODY INVENTED THE INTERNET
Fast forward to today; if you pay attention to the news, we’ve inherited
those same industry norms, e.g., properties growing stale on the market
and sellers feeling “cheated” when they can’t get THEIR over-inflated
asking price. These old fashion methods are unnecessary!
The consumer has become empowered and now has a way to fact-check stuff.
Anybody with a computer or mobile phone can access the internet and
get the financial history on just about any property they want.
Today’s savvy buyers are often aware of the value of a condo in a particular
complex. They can see if/when there is a significantly higher price on a similar
AND STILL, MOST SELLERS BELIEVE
- They can overprice their condo.
- Buyers will magically come.
- If that doesn’t work, then
- They can always reduce the property’s cost.
- If an agent can sell your condo in ten days or
less, the property wasn’t priced high enough.
- If an agent can sell your condo in ten days or
WHEN THE REALITY IS
- You don’t determine market value; only willing and able buyers do that.
- Next, suppose buyers aren’t aware that your property is even available.
- And you probably don’t realize that your condo is just one among a million others for sale.
- In that case, buyers won’t see your unit due to the intense competition
from other condos on the market. You’ve got to do something to bring the focus
to your unit only.
- Thinking that you can overprice your condo and then reduce the price
is equivalent to closing the barn doors after the horses have run away!
- The goal is to keep YOU in the “power position” by NOT having to reduce
the cost of your property!
- If an agent can bring you multiple offers on your condo in ten days or less,
it is most likely due to their marketing efforts and NOT that your unit
was priced too low.
- Targeting the right buyers to create a multiple-offer situation takes skill
and preparation which would require a limited timeframe to see desirable results
when done correctly.
“REMEMBER TIME IS MONEY” – Benjamine Franklin
It’s heartbreaking and sad that most sellers don’t realize that the FIRST TEN DAYS
their property is on the market are CRUCIAL to what buyers see and think about their condo.
After that, the unit will go stale, and the seller may have to reduce the price.
But by this time, interested buyers may have already formed a negative opinion of your home based
on the cost compared to similar condos in your area and thus offer much less than you’re
asking, or they’ve bought somewhere else.
“FOR FAST ACTING RELIEF, TRY SLOWING DOWN” – Lily Tomlin
Interest rates have increased, causing home sales to slow down. Many buyers have stopped looking
or have decided to pause their search until the market cools down before making a purchase.
According to information gleaned from an article I read on NextAdvisor:
National data shows that home sales are dropping significantly, and it’s starting to reflect
in home prices. This statistic alone should serve as a deterrent to sellers considering pricing
their condos over market value.
Data from the National Association of Realtors (NAR) showed home sales down 5.9% in July
compared to June, the sixth month in a row when sales declined. The same report found
the median sales price for an existing home was $403,800 in July, down from $10,000 in June.
AND STILL, THERE ARE LOTS OF QUALIFIED BUYERS AVAILABLE
Interestingly enough, there are still lots of qualified buyers available, and
an excellent opportunity to get over the asking price for your condo without overpricing!
While it is possible to profit from overpricing your home, the reality is you stand
a better chance of having your condo sit on the market, even after several price reductions!
Have you ever wondered what successful sellers did in the past to get their units
to fly off the market in ten days or less for over the asking price without overpricing them?
It’s no secret that the real estate market in Chicago is competitive. People relocate
for various reasons, such as job transfers, graduate school (Northwestern, University of Chicago)
family ties and desiring a diverse city lifestyle, it’s no wonder housing prices and condos
have been rising in recent years.
ARE CONDOS STILL SELLING OVER THE ASKING PRICE?
Yes! I promised earlier in this article to tell you about an alternative technique,
and here it is …
One proven way to get over the asking price for your unit is to use a highly effective
target marketing approach to attract the right buyer who will be interested in and can
afford your condo. It’s a method used by Nike and other luxury brands that offer high-end products.
To give you the full details, I have written an article explicitly telling you how to use
this strategy to sell your condo in ten days or less for top dollar.
So, click here to find out how this strategy puts all eyes on your condo only by positioning it to be
in a category of one! It’s what I do for my clients.
This marketing strategy takes preparation, observation, and dedication! There’s no shame
if you need to ask for help. I’ve assisted many sellers through this process
with great success and can show you how it works!
This is a no-obligation consultation and service I provide to homeowners who are serious
about selling their condos. You can call or text me at 312-600-8121
or click here to send me an email. I’ll get back to you within 24 hours.