| Eleanor Valliere, GRI Direct: 239-671-1021 Sand Castle Realty Group, Inc. 2220 Venetian Court Naples, FL 34109 Office: 239-594-2170 |
Precision Pricing
There are reasons that sellers may overprice their properties:
However, if the property is not priced to the current market:
In the current market with selling prices continuing to fall, sellers need to determine where the
most advantageous listing price will be. They need to price a property so it will attract the interest
of serious buyers yet not price it where they will be losing money they might have gained.
When a property is overpriced it:
Buyers need to feel that the price they are spending truly reflects the value of the property they are buying.
In that situation, everyone is a winner.
Currently sellers who have held their property for more than two years stand to gain an attractive profit on
the sale of their properties. No one would argue that the 2005 investor buying frenzy is certainly over.
Serious sellers need to put those inflated selling prices out of their minds and concentrate on marketing their
homes to the current buyer who is wary of the plummeting prices.
Right now no one can determine when the downward trend will end, when prices will finally stabilize, and
when the selling profit margins will begin to go up. Does it not make sense that the buyer must feel that the
he is paying for the true current value of the home?
Precision pricing is the answer. How much could the property sell for at this time? What is the fair
market value? Selling a property now depends on determining that magic price range to attract the serious
buyer and reach a fair selling price.
There are reasons that sellers may overprice their properties:
- They may have put more money into it than they can recoup
- They may need the money for other debts
- They may feel they need more negotiating room
- They may be just “testing the market”
However, if the property is not priced to the current market:
- It is likely to take longer to sell
- It will be ignored in favor of newer listings
- And most likely sell for less than it could have earlier
In the current market with selling prices continuing to fall, sellers need to determine where the
most advantageous listing price will be. They need to price a property so it will attract the interest
of serious buyers yet not price it where they will be losing money they might have gained.
When a property is overpriced it:
- Reduces showing activity
- Reduces advertising response
- Loses serious buyers
- Attracts the wrong price range buyers
- Discourages offers
- Fails to appraise
- Helps sell the competition
Buyers need to feel that the price they are spending truly reflects the value of the property they are buying.
In that situation, everyone is a winner.
Currently sellers who have held their property for more than two years stand to gain an attractive profit on
the sale of their properties. No one would argue that the 2005 investor buying frenzy is certainly over.
Serious sellers need to put those inflated selling prices out of their minds and concentrate on marketing their
homes to the current buyer who is wary of the plummeting prices.
Right now no one can determine when the downward trend will end, when prices will finally stabilize, and
when the selling profit margins will begin to go up. Does it not make sense that the buyer must feel that the
he is paying for the true current value of the home?
Precision pricing is the answer. How much could the property sell for at this time? What is the fair
market value? Selling a property now depends on determining that magic price range to attract the serious
buyer and reach a fair selling price.
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Consider comparables. What have other homes in your neighborhood sold for recently? How do they compare to yours in terms of size, upkeep, and amenities? Consider competition. How many other houses are for sale in your area? Are you competing against new homes? Consider your contingencies. Do you have special concerns that would affect the price you’ll receive? For example, do you want to be able to move in four months? |
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