Podcast - 4/12/24

🌟 **This Week's Podcast Episode: "Why Overpricing Your House Can Cost You"** 🏠💸

Spring has sprung, and with it comes the prime season for selling homes! 🌸🔑 While it's an exhilarating time to plant that "For Sale" sign thanks to a seller's market, it's crucial to be savvy about your asking price. 📊

**Why Overpricing Is a Misstep:**
- An inflated price might make potential buyers scroll past your listing. 🚫👀
- Buyers are keen not to overpay, especially in today's market. With home prices and mortgage rates on the rise, your overpriced home might be left waiting for offers. ⏳💔
- A long wait can lead to price reductions, which could raise red flags for buyers, making them wonder what's wrong with the property. 🚩

**Lean on Your Agent:**
Only an experienced agent can navigate the market to set the right price, ensuring your home attracts buyers and competitive offers. 🌈💰

**Bottom Line:**
Aim for the sweet spot in pricing to avoid deterring buyers and to speed up the sales process. Let's team up to find the perfect price for your home and maximize your profit! 📈🤝

🏡 **House of the Week:** 4045 N Stone Rd, Taneytown 🌳
- Price: $440,000
- Split level (4 levels), 3 bedrooms, 3 bathrooms
- Features: 3.16 acres, 2 renovated bathrooms, new LVP flooring, rear deck, balcony, sheds, koi pond, private setting, new kitchen flooring, engineered wood floors.

**#RealEstateTips #SellingYourHome #MarketInsights #HomeOfTheWeek #RealEstatePodcast**

Tom Whalen:

I'm Tom.

Jay Day:

I'm Jay.

Tom Whalen:

of Jay Day and the Day home team at LPT Realty doing our weekly podcast over the phone this week for well just conditions beyond our control. How's it going?

Jay Day:

Yeah, you could probably hear the voice is a little different. My goal was to avoid giving you the flu, Tom. So telephone podcast is the way we're rolling this week.

Tom Whalen:

That's the way to go.

Jay Day:

Not like we haven't had to do stuff before, right.

Tom Whalen:

We've had to jump through hoops in the past. What's going on in the real estate industry, sir?

Jay Day:

So I wanted to chat about something that we're starting to see a little more, and I think we maybe talked about it a couple months ago, but even though we're in a situation where the real estate market has a very limited supply of homes and it's still a seller's market, why overpricing your home actually can cost you more in the long run. So if somebody wants to put their home out there and they're putting it out there at a number that is not realistic because they realize, hey, well, there's not a whole lot of homes out there, so I'm going to push the envelope. That may not be the smartest move to me. Now, one of the reasons for that is if someone's looking, been looking online, they see what other homes are selling for, they see what's going on, they're going to look at that and they may not even try to schedule a time to see your home. They're looking, they're like, well, hold on. This house is listed for 650,000. Everything I've been looking at in this neighborhood is 575. I have no idea what this person's thinking. Yeah, the photos look nice, but it's in a neighborhood. The home is the same as these other homes, same floor plan, maybe a couple different things on the inside, and I mean, it definitely creates some negative attention. Now, the biggest thing on the back end of that, Tom, is what happens when the home is overpriced? It sits on the market, and this is where the bigger damage comes, because when they start seeing the days on market tick up, for example, let's say, and I'm just going to make a number up right now just to give a little bit of a scenario. Let's say that you wanted to be in new market, and for all the homes that have sold in the last 60 days, the average days on market is seven and your home is up at 39 days on market. People are going to look at that and say, well, there's something wrong with this home. Something's going on. Even if you end up making a price adjustment, because the days on market is so long compared to everything else, they're automatically going to make a decision in their mind of, oh, there's something going on with this. There's something not right. So a lot of buyers will end up passing on the house without even talking to their agent about it, having their agent reach out to the other agent to figure out what's going on. It just creates a whirlwind of problems where if you price it right, it will sell very quickly. And I think the problem is sometimes sellers wonder if it sells in seven days. Does that mean that they underpriced it? Not really. I mean, because you can tell based on how we explain it to people. If you put your home on the market, and let's say we have, it's been on the market for a week, and we've had two people through, obviously we weren't underpriced because there would've been more showings. If we put it on the market and we have 30 showings, and of the 30 showings we have five offers, those offers are going to push it to true market value, and it may escalate over overmarket value. Where the other option is we have 30 showings and only one person writes, we know that we weren't under market value. So the market will react and speak to you in terms of you're never going to undersell something as long as you allow a certain amount of time for the home to be seen and be on the market. Does that make sense?

Tom Whalen:

That doesn't make sense, but I have to ask, do you get some pushback when you tell people you make this explanation and they had this dream number in their head sometimes. Is it a hard point to get across?

Jay Day:

Sometimes it is. I mean, so how we operate, we actually tell our clients, hey, here's the range we think it'll sell in. Our suggestion is we have a bunch of different options for how we handle this. We can go at a little under market value and create a feeding frenzy where people are going to end up paying more. We can price it about right, and we will probably end up getting one or two offers. Or if you want to press the market, you can. However, the expectation is going to be that you're going to have less showings. You may not have an offer. You may have to do it with a price reduction. So we do explain all of those, and ultimately we leave it up to our seller client to make the decision of what makes the most sense for them. Our job at that point is truly to educate them on the pros and cons of all the options, and then only they can make a decision of what makes the most sense to them.

Tom Whalen:

That's why you call the pros, because if you're selling right now, just like you say, less inventory, you're thinking, this is it. I'm going to make my bank this time around, and then you talk these people into a little bit of sense.

Jay Day:

Yeah, yeah. Or if they're going to do that, we just, again, as long as you go in with your eyes wide open, you know what the expectation is. The challenge we run into is some people are afraid as far as agents, to tell people, oh, I know you want to sell your home for this. However, there's no supporting data by doing this. These are the disadvantages because some people just can't handle tough conversation, and if anything, we find most of our clients appreciate the bluntness, and they're like, they'll come back and they'll say, you were right. That was sort of silly. Maybe I shouldn't have done it that way. And we're like, no problem. As long as you understood. I mean now, because some people have to go through a little bit of that before they feel, because I could tell you all day long, the market will speak to you, and if you price it at market value or a little below, it's not going to sell for under. You'll actually have multiple offers bidding it up, but some people just can't picture that in their mind. So they have their number they want to try, and then they realize, wow, that wasn't the smartest move, and we're not mad at them. They're not mad at us. They understood the risk going into that, and we tell people, we've been doing this for 20 plus years. There's no crystal ball. If we could predict the future, then I would be retired by now. I would've been able to bet on a ton of things and win everything. But our job again, is just really to educate and explain, because think about it, when you're a kid and your parent says, no, you got to do it this way. Or if you don't have explanation, it's harder to grasp why. When you can give people the why, the pros, the cons, and then they can make an informed decision themselves. It's a whole lot better process.

Tom Whalen:

Jay, you're sounding much, much better than you did at the beginning of the podcast. So you got a home of the week.

Jay Day:

I do, Buddy, 4045 North Stone Road in Taneytown just hit the market. This home is listed for 440,000. It is a split level. Don't be confused. A split level is very different than a split foyer, split level home. This one has four levels. So you walk in your main level, you've got a foyer, you've got a living room, you've got your dining room, you've got your kitchen. You walk up a flight of stairs, you've got your three bedrooms, you have two full bathrooms. Then you go back to your main level. You walk down another level there, you've got a family room, laundry room, and another full bathroom. Then you walk down another level and you have a partially finished area, so four full levels in this home. Again, three bedrooms, three full baths, situated on 3.16 acres. Two of those three bathrooms had been fully renovated. There's a rear deck. The lower, well, the basement one where the family room is that has been renovated, has LVP flooring. There's a balcony off the master suite. There's sheds, there's a Koi pond. There's tons of private setting as far as you're out there, and this is a beautiful location. If you go to look at the photos and the aerial video, you will see how stunning it is, and the kitchen just had new flooring put in. There's engineered wood flooring in the dining room and living rooms. There's a two car side, low garage, again, beautiful countryside, right out in Taneytown right off 194. If you go to wfre.com, you look up Tom and Jay's real estate podcast, you'll be able to see photos. You'll be able to see video, drone video. I mean from your front stoop, one of the neighbors in the front actually has a large pond that you can actually see as you're sitting on your front stoop. So very, very cool property. Go to wfre.com. Check out Tom and Jay's podcast. If you like what you see, let us know. We can get you in for a private showing.

Tom Whalen:

I'm Tom.

Jay Day:

I'm Jay.

Tom Whalen:

of Jay Day and the Day home team at LPT Realty. Thank you for listening to our weekly real estate podcast. Tell your friends all about it.

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