With all the technology in today’s residential real estate market, is it really possible for a listing to be ‘invisible’? It absolutely is! And it’s specifically possible due to all the technology surrounding real estate.
There was a time when an owner could list his or her home or condo for a much higher price than justified. The goal was to go ‘fishing’ with pricing -- hopeful that there was someone out there willing to overpay.
With today’s technology, and our ability to micro-target neighborhoods and price-points, an overpriced property can be virtually invisible to prospective buyers, particularly in the $1 million and over market, where there is excessive inventory today.
Let’s say someone is selling a two-bedroom condominium. All of the recent comparable sales for the area, including those for that specific building, note that most two-bedroom condos in the area have sold in the $1.2 to $1.8 million range. But… this seller decides to list for $2 million.
An educated buyer (as most are today) narrows his or her search to the appropriate parameters for a two-bedroom condo in the area, including price parameters. The result? The buyer begins their search online between $1.2 and $1.8 million and never sees the unit that’s priced at $2 million. And, the most disappointing point is the fact that the seller with the $2 million-priced unit might have actually been able to sell his or her unit at its real market value had buyers actually been able to see it. In this example, the condo listed for $2 million was completely invisible. Literally!
Research has shown by the real estate industry further reveals that unless a property is appropriately priced, even a slight deviation toward over-pricing significantly limits the number of ‘views’ a listing might receive. We encourage our sellers to list their properties no more than 5% above a professional estimate of the property’s value.
The numbers prove this. According to data from the regional Multiple Listing Service (MLS) for Q3 2019 for properties located within Miami-Dade County, the average closed sale price for a single-family home priced above $1 million was 84% of the average original listing price, compared to 88% for the same period one year earlier.
The average closed sale price of a Miami-Dade condo over the same time period was 81% of its original asking price, compared to 87% for the same period one year earlier
More and more sellers today are realizing the importance of ‘right pricing’ from the onset of the process. It is the absolute crucial component in helping generate sales in a reasonable time period.
It is our belief that there is more pent-up demand for luxury housing in South Florida today than we have ever had in history...but buyers must feel comfortable that our properties are priced appropriately.
Don’t purposely hide your property from buyers who are currently searching within our market. By establishing ‘right pricing’ from the start, you’ll be giving your property a definite advantage!