Establishing a Pricing Strategy
Understanding Market Value
Market-sensitive pricing can be the key to maximum market exposure and, ultimately, a satisfactory sale.
The existing pool of prospective buyers determines a property's value, based on:
- 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.