The Right Price Matters!
Even though most property sellers think a marketing discussion comes first when considering a property sale, it should be stated that the wrong price might nullify even the greatest marketing efforts. The most important first step before listing any home is to take time to discover the potential, realistic sales price range for your property. Many property sellers chose to ignore this fact, to which we reply “then why not simply increase your price beyond the suggested market range and see what happens?” Most likely, the market will penalize the wrong price and demonstrate that it is much more efficient than sellers are aware of. This is because today’s buyers are more educated than ever before due to the ease of access to information via the Internet. However, can buyers actually compare properties? Well, yes…
You Can Compare Apples to Oranges!
The biggest challenge in real estate pricing is that residential property is not a commodity. For example, when pricing a used car you can look at what cars with the same mileage and condition sell for, however, because of the many differences from one property to the next, it’s difficult to find the right price even when properties share many of the same features. Therefore, the assumption is that they can’t easily be compared. This is inaccurate thinking. In fact, it’s possible and necessary to compare properties of different styles to each other, because all final sale prices in any neighborhood have a measurable affect on each other; but how do you compare true values? You’ll discover that…
Simple Math Reveals Your True Trading Range!
Have you ever wondered how it’s possible for technology to deliver an instant home evaluation online? It’s because there’s more than enough public data available to accurately predict the true potential sales price range of your property. Simply put, all the public data regarding that particular property is run through a mathematical algorithm that then provides an estimate of value. It’s a good place to start and shouldn’t be ignored, but of course that information is only one component of a professional and thorough market price evaluation. In order to narrow the trading range you must arrange a property visit by a professional real estate agent or appraiser to assess condition, location and many other factors that will affect the final market sale price. In spite of this up front effort to determine the correct price range many sellers will ask, “but why not just cheat to the highest end of the range and beyond, can’t you just bring me an offer?” Our answer is because…
A Price Even Slightly Out Of Your Range Prevents Offers!
When a property is priced even a few percentage points outside the predicted trading range, it may cause low buyer traffic, increase days on the market and prohibit showings that eventually lead to offers. This is a price problem, not a market problem. One of the most painful and perhaps desperate positions to be in as a seller is when you end up frustrated saying “why doesn’t my agent just bring me an offer” instead of simply adjusting the price into the range where multiple buyers have the incentive to view the property along with competing properties in the same price range.
We realize that discovering your true and accurate price range is a difficult process, so please feel free to contact us to arrange for an in home consultation on how to establish your property’s current price range.
Understanding that you must start the property sale process by learning how to establish the right price range will set up course module #2 where you’ll learn how to improve the condition of your property in order to increase its value.