Homes that Sell for Top Dollar
In April, 41% of all Los Angeles County closed sales sold above the list price, and another 16% sold at the list price.
An elite professional women’s track athlete can run 400 meters in 49 to 52 seconds. Sydney McLauglin-Levrone ran it in 47.78 seconds, an American record, inches away from a world record. Spectators see her warm up for about 15 minutes in the stadium before running and winning a very fast, short race. Yet, Sydney didn’t just jump on a track and win. She has been preparing for years, training 4 to 5 days per week. Her workouts were intense. She hit the weight room. She used visualizations and positive self-talk techniques. The consistent, calculated preparation is what made Sydney one of the fastest athletes of all time. Her success was planned.
Sellers who sell fast and fetch top dollar don’t simply pound a FOR SALE sign in the yard, pick a price, get plenty of buyer activity, and sell quickly. There is plenty of preparation before these homes are placed on the market. These showcase homes have enhanced their overall appeal by removing any signs of wear and tear. They replace worn flooring, paint inside and out, replace outdated fixtures, install new appliances, repair any deferred maintenance, clean up the landscaping, and enhance the curb appeal. Many of these homes are updated and upgraded. Every detail of the home’s desirability is considered. Finally, these homes are carefully, methodically priced, analyzing all recent pending and closed sales activity. Their success was planned.
Today’s housing market is considerably slower than it was during the heyday of the pandemic. But that does not mean that homes are not flying off the market. Many buyers mistakenly believe that they can get a “deal” on every home without really knowing the facts. In April, 41% (1,711 of 4,131) of all Los Angeles County homes sold for more than their last asking price, with a median time on the market of 14 days. The median amount paid above the asking price was $30,100.
Another 16% (663 of 4,131) of all homes sold in April were sold at the last list price, with a median time on the market of 15 days. And 43% (1,757 of 4,131) sold below the last list price with a median time on the market of 40 days. The median amount paid below the asking price was $34,000, and it took nearly a month and a half to secure success.
Buyers look at their favorite real estate app morning, noon, and night, anxiously waiting for anything new to hit the market. When something does, they examine every photo, view the virtual tour, and then look at the price. Showcase homes attract buyers because they are not only turnkey and ready to go, but also priced right. They sell for above the asking price because they attract the interest of several buyers simultaneously. When there is only one home, one seller, and multiple buyers, buyers compete for the home, and it ultimately sells above its asking price in a very short time.
Homes that require work, have deferred maintenance, are in a poor location, or lack updates and upgrades can still attract a buyer, but they must be priced according to their Fair Market Value, taking into account their limitations. These homes are excellent candidates for buyers looking to negotiate, as they typically do not attract multiple offers and sell for less than their asking price.
Showcase sellers know buyers want a turnkey home that doesn't need any work before moving in. Buyers are sensitive to the condition of a home, the flooring, paint, appliances, cabinets, countertops, light fixtures, custom built-ins, window coverings, landscaping, curb appeal, upgrades, and amenities. Before touring a home, buyers look at every detail. Finally, they look at price. When a home checks all the boxes and is accurately priced, it attracts plenty of activity, multiple offers, and sells for top dollar. They have the “wow” factor, and their success was carefully planned.
ATTENTION BUYERS: Do not set limits on NOT paying at or above a home’s asking price. A revealing 52% of all closed sales last month sold at or above their asking price, and they sold very fast. Homes with all the bells and whistles, priced right, attract plenty of buyer activity. Buyers who are unwilling to compete limit themselves and will not be able to purchase an attractive showcase home.
ATTENTION SELLERS: Preparation before listing a home is essential in maximizing a home’s top dollar. Preparing a home is not a simple process. In the weeks or months leading up to listing a home, addressing its overall appeal, condition, updates, and upgrades, and then meticulously arriving at its asking price, will result in increased buyer activity and a sale at the highest possible price.
