Craig Stahl
615-578-9175
Real Estate News
Pricing Your Home To Sell Studies show that the longer a property stays on the market, the less the seller will net upon the sale. When you are ready, contact me today for a personal market value analysis of your home. No hassles or obligation - just honest advice on how to get top dollar for your home!
It's true.
It is very important to price your property at a competitive market value at the signing of your listing contract. The market is so competitive that even over-pricing by a few thousand dollars could mean that your house will not sell.
An Overpriced Home:
· Minimizes offers
· Lowers agents response
· Limits qualified buyers
· Lowers showings
· Lowers prospects
· Limits financing
· Wastes advertising dollars
· Nets less for the seller
Email Craig with Questions....
Pricing TargetBy Nancy Jenkins, CRB, CRS
Prudential Realty Mart,South Burlington, VT
I developed the target in 1995 as a straight-forward color illustration of the message I was delivering to sellers on how to price a property correctly. The market had been down for five years, and it was important to give sellers the information they needed to achieve success.
The basic idea of the graphic is to show how pricing a home in the bull's-eye, where buyers perceive that the property is priced correctly and are compelled to act, will lead to a win-win home sale.
All homes sell based on a comparison of size, condition, and location. Buyers begin to distill these factors when they first review the offering or listing sheet, again when they pull up to the door, and finally when they tour the property. If the price is right, they will feel that "at this price, if I do not make an offer, someone else will." The price will be compelling enough to cause action.
If the property has a good number of showings and the comments are "nice" with an operative "but," then the property is priced just above where the buying public feels the urgency to act. Usually sellers are not far off, within 4 to 6 percent of the correct price. The closer the price is to the right price, the more showings the seller will have and the more positive comments they will receive such as "Almost the right one" or "The property is in our top two or three" -- all close calls, but not offers. Sellers often want to stay at their original asking price because they have not had an offer; but, in fact, if they are close to the right price, a small adjustment or repositioning can bring the success they desire.
If a buyer drives to the property but does not go inside, then this is an indication that the price does not support the visual determination of value. There may be exterior conditions, such as neighborhood or location issues. These are the same "size, location and condition" factors that convince the buyer that it is not worth their time to tour the property, even though they took the time to drive to the property with the intention of going inside.
Having a low number of showings and harsher comments indicate that buyers are not seeing the value when they tour the property and the price is far enough off the mark that they are not shy about making comments that more strongly indicate their displeasure, such as "This home is too small," "Smells wrong," "Is dated." These again are "size, condition, and location" conditions that are deterring the buyer from making an offer. In this position, the asking price is usually 6 to 8 percent, and sometimes 10 percent, over the correct price that is acceptable to the market.
If no one comes, then the property has been rejected by both the realtor population and the buying public. The determination not to visit is a clear indicator that the property is 12 percent or more above the correct price.
The bull's-eye can be used in many circumstances: When a price correction is needed, when an offer comes in, or when meeting with a seller whose listing has expired or was for sale by owner. You can use the graphic to judge the reality of their pricing, using an analysis of the property's showing history, and, from there, create a strategy for success. It is also important to note that it is wise to adjust by percent, as pricing and relevant adjustments will be specific to each property.
