2021 has certainly been a seller's market so far. When assessing the state of the market, we look at how long it would take to completely sell out of current inventory if no other inventory were to come available. If it would take more than six months to sell everything, then it's a buyers market. If it would take less than six months to sell everything, then it's a seller's market. So just how much of a seller's market are we in? In the Englewood area, that number is currently .6 months. That's right, LESS THAN ONE MONTH!
So it seems like a no-brainer to list your home, right? It will sell fast and for top dollar. Maybe. It all depends on what price you list your home for!
Our listings take advantage of the internet pricing strategy, that could net sellers more money. With this strategy we price right on the brackets that most people search for, which are at $100k, $50k,or $25k price points. This has the potential to capture two different sets of buyers, for instance those looking up to $200k and those looking over $200k. If we would price at $210,000 we would miss any buyers looking up to $200k only. So in this instance it would be better to list at $200,000 instead of $210,000.
Additionally we are pricing on the low side of the recent sales in the area in order to create an auction effect. This is designed to capture the attention of as many buyers as possible. As you can see in the image above, it is proven that you will create more interest on a home the further it is below market value.
The other key strategy we have been employing is to notify agents and buyers through the MLS that the property will stay on the market for at least 5-10 days before accepting an offer, to be sure that all interested parties get to see the property and make their offers. We want your highest and best offer.
We have had some sellers push back on this, not trusting that they will get as high a price as they want on offers. What we've found is that in those cases, listing higher than market value, is that we had to do price reductions and never attaining that frenzy resulting in the bidding war. Then sellers ended up getting even less than what they had hoped. However, when priced lower than they are hoping to get, multiple offers have come in and the resulting sale has gained them more than they initial wished!
The market will not allow us to price too low, buyers will bid it up so that sellers get the best price possible.
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