When pricing your home in 2021 – Tips for Sellers from The Ladd Group
SEASONAL SELLING CYCLES
The Spring and Summer markets have come and gone, but does that mean that you need to wait until next year to sell? Absolutely not. Although May, June and July typically represent the peak months for sellers’ homes to be exposed to the largest number of buyers, that is not to say there won’t be opportunities to sell before the end of the year. In general, we see a bit of a lull in August as buyers are out and about enjoying summer activities, with then a bump in activity in September/October before declining again in November and December. Although there are fewer buyers in the market in the fall months, the ones that are out are real and typically want to be in their homes by the holiday season and before winter sets in.
If selling later this year is not in the cards and you think Spring may be a better time, we would suggest planning now. If winter weather is mild, new listings and new sales activity pick up earlier in the year. The problem with waiting until the new year to prepare for a sale is that your home may not be ready for listing when you want it to be. Get started on those repair projects now. Does the exterior need a coat of paint, does the deck need staining, are there any lingering things that need to be done outside? You won’t be able to get people out mid winter for these things, so planning ahead will pay off. Also, keep in mind that although your house may be ready for sale in January/February, this is typically not the best time of year for photos and video. We would suggest considering having this done before leaves fall so that you can time the sale on your terms and maximize your return. 2020 reminded us we can’t predict the future, but what we can do is prepare in advance so you can be ready when the opportunity is right.
BE REALISTIC IN PRICING
After a year of multiple offers being the norm, sellers need to understand that the dynamics are changing. For some time now, buyers have been partially driven by the emotion of wanting an immediate change to their situation. This has led to a more frenzied market and, in many cases, above market closing prices. However, we would caution sellers away from just extrapolating from a recent sale and adding 3-5% to that number. Buyers are being more patient and methodical with their purchases and have a wealth of data at their fingertips. When they see a price that can’t be justified, they are becoming less and less likely to act, forcing sellers to lower prices. The problem for sellers is that when educated and patient buyers see price adjustments, they sense opportunities and often try to get even more of a discount. More times than not, this aggressive pricing followed by rounds of reductions ends up driving prices lower than what originally could have been achieved had the price been in line with the market to begin with. Look at the market conditions, time of year, and work with a professional to collectively craft a selling strategy that will lead you to the result you want.