Establishing a Pricing Strategy
Don't risk losing prospective buyers by improper pricing!
Understanding Market Value
- Location, design, amenities and condition.
- Availability of comparable (competing) properties.
- Economic conditions that affect real property transactions.
Factors that have little or no influence on the market value of a property include:
- The price the seller originally paid for the property.
- The seller's expected net proceeds.
- The amount spent on improvements.
The impact of pricing:
- Properties priced within market range generate more showings and offers, and sell in a shorter period of time.
Properties priced too high have a difficult time selling.
Determining A Market Sensitive Price
Have sold in the recent past
- This shows us what buyers in this market have actually paid for properties similar to yours.
Are currently on the market
- These are properties that will be competing with yours for the attention of available buyers.
Failed to sell
- These homes were rejected by the market place. Understanding why these properties did not sell can help avoid disappointment in the marketing of your property.
The Dangers of Overpricing
- Approximately 80% of the marketing activity occurs during the first six weeks.
- Proper "market value" pricing results in greater exposure and an increased probability of a quick sale.
- Activity can be brisk during the initial listing period, but an overpriced home will miss this surge of opportunity.
- An overpriced home may experience fewer showings.
- A home that lingers on the market due to overpricing may ultimately be overlooked.
AVERAGE DIFFERENCE BETWEEN LIST PRICE AND SELLING PRICE BY LENGTH OF TIME ON MARKET
PRICING YOUR HOME CORRECTLY IN THE BEGINNING WILL NET YOU MORE IN THE END!
(Based on National Association of Realtors Home Buyer and Seller Survey)