Marketing Vs. Prices: Which is more important when selling your house?
One of the first questions homeowners will ask when we sit down to discuss selling their home is, how are you going to market my home?
I am a former marketing executive so I know the power of marketing when it comes to real estate. A big part of my value proposition to my clients is my ability to maximize the exposure of their homes and make them stand out from the competition. Because the more exposure a property gets, the better your chances of getting the best price.
BUT, with that said, I’ll also be the first to tell you that all the marketing in the world won’t work if the house isn’t priced right.
The best example I can think of is the “Home Alone” house, the house that starred alongside Macaulay Culkin in the 1990 hit movie.
The 14-bedroom home is a beautiful Georgian home located on a desirable street in the upscale town of Winnetka, IL. It was released in May 2011, at a list price of $2,400,000. The owners knew they were selling in a bad market, but said they were confident the house’s celebrity status would give them great exposure.
And boy did it!
When the house hit MLS, it was THE story on every TV and radio station and in every newspaper in the Chicagoland area. It was even picked up by stations and newspapers across the country. Real estate bloggers and Hollywood bloggers wrote about it. That house got more exposure than any normal home could ever hope to get.
But it was not sold.
By August the price had dropped to $1,950,000. It hasn’t been sold yet. In November it was withdrawn from the market.
It returned to the market in March 2012, eventually selling for $1,585,000, 33% below its original list price.
The lesson is clear: If you want to sell your home quickly and get the best price for it, you need to make sure you’re getting the right price first, and then worry about marketing. A good real estate agent will provide you with comps (houses similar to yours) that have recently sold or are on the market (your competition), and recommend a listing price based on this and current market trends. The price of your home relative to comparisons will differ depending on whether you are selling in a declining market or a rising market.