In order to sell your home in today's market, it is important to price it correctly. In this video, San Diego Realtor Jeremy Mchone will help you learn about different pricing strategies and how to choose the one that is best for you. You will also learn about some of the factors that influence home prices.

I'm Jeremy McHone with the Whissel Realty Group and I want to shoot this quick video to discuss how to price your home in today's market. How you price your home in this market is going to go a long way to determine whether you end up selling it and how much you end up selling it for. Because just like marketing, pricing is a strategy. We can have all the best marketing in the world, if you don't price your home correctly in this market, it's not going to sell. We're not in the same market we were in earlier this year where pricing didn't matter.

You could throw your home on the market at any price. You'll get 10 offers. That's not the case anymore. You have to be a little bit more strategic about your pricing. You might have heard that prices are declining in San Diego and that's true. In April, the median price for a single family home was right around a million dollars. Now, here we are in November. It's closer to 880. So it's around a 12% decrease in median home price.

What that means is if you price your home today based on what's sold in April you're off in your pricing by about 12%. What we also have to take into account is that when you look at comps or homes that sold in your area that are similar to yours you're looking at a snapshot in time. You're looking at what a home sold for, what a buyer paid for when that deal was negotiated at that point in time. So if you look at a home that sold in say July, well that closed in July which means that deal is probably negotiated back in June. So if you price your home based on a home that sold in July, you're pricing your home based on June's numbers.

If you're looking at those comparables based on the ones that sold a few months ago now you're pricing your home based on the past and it's not the market we're in today. So what we have to do is, we have to look at a couple different things. One of the things we have to look at is we have to look at what's on the market right now. So in a declining market, if you're pricing your home based on past sales, then you start adjusting your price. You're just chasing the market down. We don't want to do that. You want to look at what other homes in your community are listed for right now because that's what buyers are looking at and that's your competition right now.

So we want to price our home based more off actually actives than we do off sold homes because the active homes that are on the market give us a better idea of what buyers are looking at today. And if we're looking at homes that are active on the market and have been sitting for two, three months, we don't want to price your home similar to those ones cuz that's a price that it won't sell at. That's a price that makes it sit. That means we have to price underneath those homes to actually get your home to get an offer on it. Now, once your home is on the market it's very important you're paying attention to the market and what the market's telling you.

And so what we do is we look at a couple different things when a home goes on the market to adjust our pricing. We look at how many showings we're getting each week and we look at how many showings it takes for us to get an offer. What we're looking for is we're looking for one to two showings a week. And for every 8 to 10 showings, we want to get an offer. If we're not hitting those marks that's the market telling us that we need to make an adjustment. So let's start with the showings per week. If we're not even getting one showing a week and we're going two three weeks with one showing only or no showings that's the market telling us that the price you're listed at is not compelling enough to get a buyer to come out and look at your home.

So that means we need to adjust that price to a point that's going to make it compelling for a buyer to come look at it. Now what if we're getting one to two showings a week and now all of a sudden we've had 10 /15 showings and there's no offers? Well, that means that we're getting people in the door. But once they look at your home something's stopping them from placing an offer. And this is where it's crucial that you're looking at the feedback from each showing. If the feedback is something that we can control maybe it's like an odor, a paint color, maybe there's an upgrade that needs to be done or some maintenance that needs to be done then you need to take that feedback, look at it and make those adjustments so that on your next showing you don't have to worry about that issue. And hopefully we can get that buyer to place to offer.

Now, if that feedback is something that you can't control like there's a freeway in your backyard or there's a noisy neighbor that everybody can hear when they come over that's not something you can control. So that means you need to adjust your price to account for that in order to generate an offer. So in this market it's very important one, that you're pricing your home based on today, not based on a few months ago cuz that's a mistake that's going to come back to bite you. And two, once your home's on the market you need to be paying attention to what the market's telling you. One to two showings a week. Every 8 to 10 showings, we should be seeing an offer.

If you're not hitting those marks, an adjustment needs to be made. And if you don't make that adjustment in a declining market what's going to happen is while you're sitting on the market prices are going down and by the time you finally make that adjustment you've actually lost more money than if you would've made the adjustment at the beginning. So I know sometimes it can hurt to reduce the price on your home, but you got to rip the bandaid off now because the longer you wait the less you're ultimately going to sell it for in this market. If you have questions, drop a comment below shoot me a text, gimme a call at 971-0791.

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