A SEVEN STEP GUIDE TO THE PERFECT PRICING OF YOUR HOME
The choice of your broker is crucial; it is the broker’s professional expertise that makes it possible to maximize your property’s sale price without overpricing.
Overpricing results in scaring away those all-important prospective buyers.
A property should usually be priced within 10% of the range at which similar properties sold. A competent real estate broker will meet with you at your home prepared to present to you comparable sales data and up-to-date information on current market conditions, all of which serve to facilitate the determination of a price range for your property. Consider that, all to often, there are brokers who whether they are motivated by apprehension or their desire to ingratiate themselves with you, will suggest to you a listing price too far in excess of what the market will bear.
There are sellers who tend to believe that having a higher asking price leaves room for negotiation while keeping alive their fantasy that a buyer will come along and pay anything for the property. Usually, this tact will result in a lengthy and frustrating marketing period, and the ultimate sales price suffers as a result.
- PRICE TO ENCOURAGE COMPETIVE BIDDING
As it does in the multi-billion dollar auction industry, competitive bidding is the best way for any commodity to achieve a top price. When a commodity or property’s price is inflated there will be no competitive bidding and your home may sit unpurchased month after month. If you do receive offers they are likely to be so low – this reflects the buyer’s concerns that will such a high asking price, it would be best to make their offer under the market if they wish to negotiate
their way to a reasonable sales conclusion.
When a property is priced correctly at the start of its listing period, it will reduce the amount of time and showing necessary for a sale. Frequently, a prospective buyer will ask how long a property has been listed. When it is a new listing, a buyer will feel more compelled to move quickly, while an older listing makes the purchase have reservations leading to doubt about the quality of the prospective purchase. “Why hasn’t it sold,” they wonder.
- GET THE BUYER ON YOUR SIDE!
Well-priced properties generates excitement with both the brokerage community and buyers. As this excitement grows, an important psychological shift occurs. In the case of the overpriced property the buyer locks horns with the seller in an attempt to break the price. However, with a well-priced property the buyer regards other buyers as adversaries in his attempt to secure the deal. Thus, the buyer is willing in the latter situation to raise his offer, frequently several times, because the presence or imminence of other buyers not only spurs him on but also reassures him that he is not alone in perceiving the property as valuable.
- A LOWER ASKING PRICE: MONEY IN THE BANK
When you finally get an offer of an overpriced property, there is likely to be only one bidder. Feeling himself in an adversarial relationship to the seller, the buyer will frequently complain that he does not want to bid against himself when urged to raise his offer. On the other hand, the property that is perceived as a “great deal” often inspires several bidders and a purchaser may spend thousands of dollars more in order to win the day.