Accurate Pricing When Selling Your Home in San Diego
Why Accurate Pricing When Selling is Crucial
When selling your home, you want to get the most money possible. In San Diego, we have fewer homes for sale than usual, so buyers are eager to find the right home that fits their budget and needs. They’re constantly checking real estate apps and talking to their Realtors to see what’s new on the market.
The first week your home is listed is when it gets the most attention. Buyers will look closely at all the photos and videos to see what type of upgrades the home has and check out its style, location, and curb appeal. That’s why professional photos are a must—you only have one chance to make a first impression. But even before they see the photos, the price is what truly catches their eye.
Pricing Your Home Right From the Beginning
Getting accurate pricing right from the start when selling your home is especially important now that the market is cooling down. Buyers today know what’s out there. They look at homes in all conditions, from perfect turn-key homes to fixer-uppers. They know a good deal when they see one. And they also know when a home is priced way out of line. If your home is priced too high, they’ll simply move on.
Once your home hits the market, buyers will quickly judge the asking price based on its condition. If it’s priced too high, many will skip seeing it in person. The longer your home stays unsold, the less excited buyers become. Even if you lower the price later, it won’t attract as much interest as a home priced right from the start.
While you might think that the price of your home will be primarily dictated by how much someone is willing to pay — often known as fair market value — establishing an asking price is key. It’s the starting point that influences how people view the property. If you overvalue it, people may be afraid or unwilling to place a bid, or worse, they might just scroll right past the listing without considering it at all.
Likewise, you don’t want to underestimate the value of your home, either. No seller wants to leave money on the table by choosing a lower price point than they had to. And if you go too low, buyers might assume there’s actually something wrong with the place.
Price Reduction Table
San Diego Market Trends and Stats
83% of homes in San Diego sold without reducing their asking price in May, with these homes selling for slightly above the asking price.
9% of homes had to reduce their price by 1-4% and took longer to sell, often selling for less than their original asking price.
8% of homes lowered their price by 5% or more and took nearly two months to sell, often for much less than the original price.
Expected Market Time – Days of Inventory Graph
The Impact of Market Time
The longer a home stays on the market, the less it typically sells for. Here’s what the data shows for homes in San Diego:
Homes sold in 10 days or less typically sold for $26,000 above the asking price.
Homes on the market for 11 to 30 days sold for about $13,000 below the asking price.
Homes listed for 31 to 60 days sold for around $29,000 below the asking price.
Homes on the market for 61 days or more sold for $46,000 less than the asking price.
Active Listing Inventory vs Demand – Graph
Active Listings and Market Demand
The number of homes for sale in San Diego County right now has grown by 7%. While demand has stayed about the same, the time it takes to sell a home has increased. For example:
Homes priced under $750,000 are taking about 57 days to sell.
Homes priced between $750,000 and $1 million are selling in about 46 days.
Higher-priced homes, especially luxury ones, have varying times on the market, with some taking much longer to sell.
San Diego County Closed Sales Year Over Year – Graph
Closing Sales and Market Time in San Diego
In April, there were 2,095 closed sales, which is a 6% increase from the same time last year. Most of these were traditional sales with sellers who had equity.
Let’s Chat!
Thanks for tuning in! If you have any questions about the San Diego real estate market and accurate pricing when selling your home, don’t hesitate to reach out to a trusted local realtor like the McT Real Estate Group. We’re always here to help. Talk to you soon!
