Pricing Strategies And Philosophies
1. A REALTOR can not control market conditions.
A REALTOR can control the Marketing Plan.
2. Never select an agent based on price.
3. Understanding market conditions is crucial to pricing.
- Are we in a rising or falling market?
- Are we in a Buyer's or Seller's market?
- Do you have the "law of supply and demand" working on your side?
4. There are four kinds of numbers used to represent the price of a property.
- Cost - What was paid + capital improvements
- Price - What the seller wants
- Value - What a Buyer is willing to pay
- Market Value - What a willing buyer & seller agree upon
**When selling your home, Market Value is what we determine.
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.
6. Reasons for not overpricing:
- Over Improvement: sellers 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 market value.
- Original purchase price was too high.
- Desire to 'break even'.
- To leave bargaining room.
- Move is not necessary.
- Corporate buy-out is available.
7. 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.
8. Benefits to proper pricing:
- Faster sale which will save carrying costs 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 offers.
- Means more money to the seller.
- Home will appraise and sale will close.
These pricing strategies are important to review and discuss to assure top dollar and timely sale for your home.