Pricing Strategies & Philosophies
A Realtor cannot control Market conditions.
A Realtor can control the Marketing Plan.
Never select an agent based on price.
Understanding market conditions is crucial to pricing.
The value of an amenity in a home is based upon what amount it will enhance the selling price, not what it would cost to add to the home.
Reasons for not overpricing:
• Over-improvement- a seller cannot selectively add to their lifestyle, enjoy it and expect the buyer to pay for the original cost.
• Need- the need for money does not increase the market value.
• Original purchase price was too high
• Desire to “break even”
• To leave bargaining room
• Move isn’t necessary
A property should show the best and be priced properly right from the start. The buyers looking at the property in the first couple of weeks are your “best” buyers. These buyers have already been looking and have seen the competition and are waiting for the right house to come along.
Benefits to proper pricing:
• Saves the seller money! Over pricing could cost you thousands!
• Faster sale which will save carrying cost and help seller to buy with today’s interest rates.
• Less inconvenience
• Exposure to more prospects
• Increased Realtor response
• Better response from buyers who inquire
• Attracts higher offer
• Home will appraise out and sale will close
These pricing strategies are important to review and to discuss to assure top dollar and a timely sale for your home.