| To obtain proper
market exposure, it is an absolute necessity to be competitive
in price, terms, and condition with similar properties that
are selling in the area. If you are a serious seller, price
your property at market value, and attract serious buyers.
You will stand a much better chance of getting a full-market
price, and your property will sell much faster.
Facts To Consider
1. An agent has no control
over the market, only the marketing plan.
2. Never select an agent based on
price
3. Four kinds of numbers are used
to represent your property:
• Cost – What was paid plus capital improvements
• Price - What the seller wants
• Value – What a buyer is willing to pay
• Market Value – What a willing buyer and seller
will agree upon
4. Regression and Progression:
• Regression – The phenomenon of an expensive
house being decreased in value because of the lesser desirable
homes around it.
• Progression – The phenomenon of a home selling
for more than its worth because of having more expensive
property or a more desirable area around it.
5. Substitution:
The value of an amenity is based upon what it will produce,
not what it will cost.
6. Reasons for overpricing:
• Over Improvement – A seller cannot select
what improvements add to their lifestyle, enjoy them and
expect the buyer to pay the original cost.
• Need – The need for money does not increase
the value.
• Buying in a higher priced area does not increase
the value
• Original purchase price that is too high does not
increase the value
• Lacking factual comps does not increase the value
• Providing bargaining room does not increase the
value
• The cost of a move does not increase value
• There is an impending corporate buy-out, but that
also does not increase value
7. The largest impression and most
impact a property makes is in the first few weeks
of the listing. Therefore, it should show the best and be
priced right during those weeks.
8. Make sure your agent understands
the philosophy of buying up in a down market.
9. Benefits to Proper Pricing:
• Faster sale which will save carrying costs
• Less inconvenience
• Exposure to more prospects
• Increased salesperson response
• Better response for advertising
• Attracts higher offers
• Means more money to sellers
These pricing strategies were prepared because,
if not followed, they may be a roadblock between you and
your goals. My job is to identify these potential pitfalls
and eliminate them.
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