It’s been part of my mantra to sellers for years: correct pricing is the key to a successful transaction. It not only determines the obvious: a property that sells instead of not selling, but the entire transaction is much for favorable for the seller if the price is considered by buyers, and by their agents, to be appropriate and perhaps a tiny bit low. We’re not talking unrealistic, but a price that will be viewed as a good value by buyers. If that’s in place the likelihood dramatically increases of getting at least a second offer, and a more satisfactory transaction as viewed by several metrics. Below I show how average days on the market is impacted: properties that sold over asking sold within 10 days – 3+ weeks (there will be some variation based on when properties are marketed vs. when they enter the Multiple Listing Service). Properties that sold below asking were on the market on average twice as long, and in some cases the difference was extreme: nine days vs. 73 days last year in the Claremont Hills.
Average DOM in East Bay Neighborhoods 2011
In most neighborhoods the difference between list and sales price was greater in the negative direction. For example, for Berkeley as whole properties that sold over asking did so by an average of 4%, but properties that sold below list did so on average by 10%.
There are more subjective, but also important differences in transactions where there is more than one offer: buyers are more likely to have fewer, and shorter contingencies. They are much less likely to ask for concessions from the seller during negotiations. Overall, the transactions with multiple offers tend to be much smoother and less stressful for all concerned.
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