What is the “Worry Price?”

Your Guide received this email this morning from @properties founder Thad Wong:

The worry price is the price at  which a home is offered where a potential buyer will say, " I am worried that someone else may buy this!"

This is very real, and where your listings need to be priced if the goal is to sell them. Buyers today are setting the pricing for which homes will sell.  They will also pass on a home because, in most of our neighborhoods,  there are more than a few homes available in that same price range with similar amenities.  Your listing needs to be the best priced home within the category it is competing against, or, if the home has a defect similar to backing up to the El or expressway, it needs to be priced where the competing homes are smaller and in much worse condition giving the buyer a valid reason to buy a home with a defect in today’s market.

Today’s market, by the way, is at the 35 year average with 5% of families actively in the market.  So, here we are:  in an average market with above average financing challenges that are gradually becoming easier; ever so slowly I will admit.

Great advice.  You can bet that if you invite me over for a listing presentation in the next few weeks, you’ll hear this in some form or another.