Benefits of Realistic Pricing

Why not just price your home as high as you think you possibly can? The chart below, from the National Association of Realtors, shows your likelihood of selling at different market values:

 

Price % Above
Market Value
      Percent of
Homes Sold
+15% 20%
+10% 30%
Priced at market 60%
-10% 75%
-15% 90%

 

Realistic pricing means you will:

- Capitalize on the first few weeks of high activity and interest.

- Attract more prospects.

- Increase the likelihood of receiving higher offers.

- Minimize the inconvenience of keeping your home ready to show.

- Accomplish a faster sale.

Remember, your need for money does not increase the value of your home. If IBM stock trades between 104 & 108, it does no good to insist on selling at 112. Pricing too high only means your price will make other homes in your area look like better deals. Overpricing your home could also make it difficult for a buyer to finance. 99% of all homes are financed. If you overprice your home, a buyer may be denied financing because the appraisal will come in too low to justify the loan.

 

Catching the crest of the buyer-interest wave

Timing is critical! The majority of buyer activity occurs in the first two weeks after a home goes on the market, and peak sales activity occurs within the first 10 days. Buyers who see a property at a non-competitive price will not be back for a second look. The longer your home stays on the market without an offer, the more it risks taking on a "shelf-worn" appearance, reducing your chances for closing a sale with a full-price buyer.

 

Pricing Competitively

At any point in time, there are several other homes for sale competing with your home. You must know what's going on in your local housing market in order to price your home competitively and to attract the qualified buyer. I will help you determine the market value of your home by generating a Competitive Market Analysis (CMA) report, which will show you a range of prices being paid for homes in your area.

We will also discuss other factors that help us determine the value of your home:

- Location

- Square footage of your home and lot

- Condition of your property

- Buyer demand level for homes in your area

- Your motivation

- Availability of financing

- Interest rates

 

Who controls the marketing factors affecting the sale of your home?

Marketing Factor       Controlled By

Market Position (based on price)

Seller

Salability/Appeal to Buyer

Seller

Marketing Program

(Agent/agent’s co.)

Market Value

Buyer

 

We will determine price based only on the factors under your control:

- Property Condition

- Marketing time

- Seller Financing & Warranty

 

The combination of an accurate Competitive Market Analysis, a precise property evaluation, and a well-executed marketing plan will help you price your home realistically in order to attract the full-price buyer.