Over Pricing Costs You a Lot of Money

If you're like many Seattleites, you may think any home in the Seattle area is as good as gold. I often hear hopeful home owners say, "Anything will sell in this market, right?" or "All you need in the Seattle area is a sign in the dirt". While our market is very active and difficult to get in to, most people are surprised to hear not every home sells. Last month, 41% of the listings in Seattle sold for at or below asking price. 

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So why do some listings win and others limp by? Below is a personal case study on pricing.

I recently sold a client's 2 bedroom, 1.5 bathroom townhome in Fremont for 18.2% over asking price ($645 per square foot). The unit was 1,310 SqFt with a 300 Sqft garage that was converted as non-conforming living space. The parking was less than ideal but the unit was beautifiul. We listed the home at $715,000 and sold for $845,000.

A block away from my listing a Redfin agent sold a 1,360 SqFt, 3 bedroom, 2.25 bathroom townhome for 1.77% above asking price ($621 per square foot). This unit also included a non-conforming finished garage with limited parking. It also included a beautiful rooftop deck with view of lake union, Mt Rainier and downtown. This unit was listed $829,950 and sold for $844,680.

If you compare the price per square foot math of my listing to Redfin's, the Redfin listing cost the seller $32,640 simply by pricing too high. 

Simply put, over pricing your home costs you a lot of money.

The truth is, not all listing agents are the same. If you're going to choose a discount brokerage, make sure they can prove to you that their service will maximize the return on your investment. 

Don't make the mistake of hiring the wrong agent!