The Price is Right!
- Jul 5, 2017
- 2 min read
Hello Friends, Followers, and Fellow Rookies
Those of you who have a listing this post is all for you! Why? Because I want to help you sell your listing as FAST as possible, and the only way to do that is to price appropriately.
It’s easy for sellers to get caught up in pricing their home because they tend to make decisions based on their emotional attachments. As a realtor you have to educate your clients while at the same time tending to those emotional feelings. It’s not easy, but it can be done.
One way to help those attached clients who want their home priced $10-20k over average market price is by kindly saying “Would you prefer to lose $10-20k now and get your home sold? Or would you prefer to lose $30k later when you have to go below market price in order to sell your home?”. Being labeled the “overpriced” house in a neighbor is detrimental. That’s because there is a 9/10 chance you will not make a sale without lowering the price significantly. This is why getting the price right the first time is so important. Educate your clients on the consequences of their emotional decisions.
To price accurately and price to sell, you must constantly study the conditions in your local market and in the specific neighborhoods where you want to specialize. Here are some factors you should watch for.
1. Inventory: How much is for sale, and is inventory rising or falling.
2. Days on Market (DOM): How long is it taking properties to sell.
3. Pricing per Square Foot: A good comparative indictor of prices when a group of properties has common qualities and features.
4. Changes in the Local Landscape: Monitor chances in the major employers, shopping, schools, other services in the community as well as changes in the local laws that impact the house.
Here’s are also two principals about markets and value to provide you with a great foundation for pricing.
1. Market Dynamics: Markets operate on the law of supply and demand. When supply is high and demand is down, prices fall. When the supply is low and demand is up, prices increase.
2. Determination of Value: Value is established based on an agreement between a willing seller and a willing buyer. It’s always a game between what the seller wants and what the buyer is willing to pay.
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