In today’s real estate market, pricing your home correctly from day one is crucial for a successful sale. In Los Angeles County, October's data shows that sellers who listed their homes at the right price saw significantly better outcomes than those who had to lower their asking price.
Here’s a breakdown of what we’re seeing:
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74% of homes sold in October didn’t need a price reduction. These sellers priced their homes accurately, resulting in a median market time of just 17 days and an impressive sales-to-list price ratio of 99.8%.
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Price reductions impact final sale prices. Homes with minor price reductions of 1-4% took longer to sell (55 days on average) and sold for about 5% less than their original list price. Homes with major reductions of 5% or more sat on the market for nearly 78 days and saw final sales prices at an average of 86.4% of their original listing—sometimes losing up to $150,000.
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The longer a home stays on the market, the less excitement it generates. Most buyers make their decision to view (or skip) a home within the first 10 days of it being listed. If a home lingers, interest wanes, and even price reductions down the line don’t generate the same enthusiasm as a well-priced home right off the bat.
So, what does this mean for sellers? Just like a runner training for a marathon, selling a home takes preparation and strategy. An experienced real estate agent can help you analyze comparable sales and market trends to arrive at an accurate, fair price that’s designed to attract offers quickly.
In this market, overpricing a home with the intent to “test the waters” can backfire, costing you more in the long run. Setting an attractive price at the outset not only shortens your home’s time on the market but often means a better outcome when it comes to the final sale price.