Pricing Guidelines to Consider
What you paid for your property unfortunately does not affect its value.
The amount of money you need to get out of the sale of your property unfortunately does not affect its value.
What you think it should be worth unfortunately has no effect on value.
What another real estate agent says your property is worth without showing solid proof certainly does not affect its value.
The value of your property is determined by what a ready willing and able buyer will pay for it in the open market, which will be based upon the value of other recent closed sales (Comps).
BUYERS DETERMINE VALUE!! DO NOT automatically list with the agent that gives you the highest price.
BENEFITS OF PROPER PRICING
FASTER SALE: The proper price gets a faster sale, which means you save on mortgage payments, HOA fees, real
estate taxes, insurance, and other carrying costs.
LESS INCONVENIENCE: As you may know, it takes a lot of time and energy to prepare your home for showings, keep the property clean, make arrangements for children and pets, and generally alter your lifestyle. Proper pricing shortens time on market.
INCREASED SALESPERSON RESPONSE: When salespeople are excited about a property and its price, they make special efforts to contact all their potential buyers and show the property whenever possible.
EXPOSURE TO MORE PROSPECTS: Pricing at market value will open your home up to the highest number of people who can afford it.
BETTER RESPONSE FROM ADVERTISING: Buyer inquiry calls are more readily converted into showing appointments when the price is not a deterrent.
HIGHER OFFERS: When a property is priced right, buyers are much less likely to make a low offer, for fear of losing out on a great value.
MORE MONEY TO SELLERS: When a property is priced right, the excitement of the market produces a higher sales price in less time. You NET more due to the higher sales price and lower carrying costs.
LESSEN POTENTIAL APPRAISAL PROBLEMS: Serious buyers will, through their agent and any other available public sources check comps. Offers will be reflective of sales the neighborhood has experienced. Buyers have to be concerned that your property will appraise.
DRAWBACKS OF OVERPRICING
REDUCES ACTIVITY: Agents won’t show the property if it appears to be priced too high. If THEY can’t justify the price to the buyer…It’s too high!
LOWER ADVERTISING RESPONSE: Buyer excitement will be with other properties that offer better value.
LOSS OF INTERESTED BUYERS: The property will seem inferior in amenities to other properties in the same price range that are correctly priced.
ATTRACTS THE WRONG PROSPECTS: Serious buyers will feel that they should be getting more for their money.
HELPS THE COMPETITION: Your high price makes the others look like a good deal.
ELIMINATES OFFERS: Since a fairly priced offer will be lower than asking price and may insult the seller, many buyers will just move on to another property.
CAUSES APPRAISAL PROBLEMS: Appraisers must base their value on what comparable properties have sold for not on your list price.
LOWER NET PROCEEDS: Most of the time an overpriced property will eventually end up selling for less than if it had been properly priced to begin with, not to mention the extra carrying costs.
Are you ready?!