Pricing Strategy

Dated: January 11 2021

Views: 24

So this is the link from the last video you were watching, “So you're thinking about selling your home!?” and the big question when listing your home is the price you set. How do you set the price realistically? How do you get the most for your money out of your house?

That's usually, that's the biggest elephant in the room as what are we going to list our home for.

So, first of all, there are a few things that determine how well your house will sell.

What determines what the property will sell for is not listing it at the highest price, it's how listing it at the right starting price.

First! You and I don't get really to decide the value. I wish we did. We don't have any control over that.

The property is only worth what qualified buyers willing to pay for it. Does that make sense?

What you do have control over is how it shows and that depends on your Staging and making it available for prospective buyers to come to see.

The second thing I have control over is how it's marketed and that's my responsibility putting together enticing buyers over the Internet with the right price and getting them through the front door. It's the very best way to get the highest and best price.

Before I share comps and data, I then ask my clients what price were they thinking? And what did you base that off of?

Then I will show you the information. I have the data that we use, and its the same data the bankers and appraisers, and other real estate agents use.

The most important thing that we can do for listing your home is coming up with the RIGHT starting price. And if we get the right starting price will see an offer in the first couple of weeks that the property is on the market. In this current Seller's market, we could have offers in hours.

I know sometimes we may be a little bit High. So basically off the data that I've seen and the research I have done will tell us if we're too high. That is................

.. we're having little showings and only a few calls, we know we're at At least 3 to 6% too high.

If we have low, or no showings we are at least 6 to 12% too high

if we have drive-bys, but no showings, then we're at least 12% too high.

Let's talk about how buyers find the homes they buy. In the past, I would take the Buyers criteria and do the research and tell them the first half dozen homes I have picked out to show them. But the buyers today and with over 50% of homes found online have been price educated and buyers tell me which houses they want me to get them in to see.

So how do we determine the right starting price??

Some say, I want to start at a much higher than market value price, what could be bad about that?

Three things right off the bat.

First, remember that buyers are much more price educated not than ever. I promise, people shop price first, and amenities last. Yes, you can drop the price later, but like an old email in your Inbox, it falls so far down the bottom, it gets lost.

Second, the longer it is on the market at the wrong price, the buyers wonder what's wrong. And me, myself, I will use that information to negotiate an even lower offer price if I was the buyer's agent.

Third, it gets the minimum amount of attention which is counteractive to why you hired me.

Starting at the Right Price will get you the highest price.

So when we meet, I will present the data and we will see what homes in your similar sq ft, age, and upgrades, Sold for.

We will also look at competing homes that are listed in your area and what is currently pending. (in contract)

Take a look at this illustration.  

The middle line represents market value. As the price of the home goes higher than the market value the number of prospective buyers goes down. And likewise, as the price drops below the market value, the number of buyers increases.

The strategy to list at market value or slightly below is not to give away any of the equity you have earned away. It's to maximize your staging, my marketing to get the most bodies in your home, and the most eyes maneuvering to out bid the others to purchase your home. That starts a process of multiple offers and the highest and best price.

Let me exaggerate it to make a point. If we listed your $400,000 Valued home at $700,000, how many showings would we get?  Zero!!

Now, what if we listed it at a crazy $100,000?

Remember we are exaggerating. But at that rate, you would be mobbed with people ready to beat down your door to get an offer in front of you.

Listing at the right starting price will get you the highest price.

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Steven Brown

Oldest of 6 kids, Born & Raised on the Oregon Coast. Stayed in Oregon until 19 years of age, Graduated high school there and then served a LDS Church mission in San Diego for 2 years. Returned to San ....

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