Have you ever been driving down the highway only to come upon a backlog of traffic. The first thought that comes to mind is always that there is an accident. So you creep along and creep along and finally you get a chance to get a look at this accident. When you arrive at the accident scene you notice that all of the roadways are clear, but traffic has slowed way down. It isn't slow because lanes are blocked but because everyone is slowing down to see the EXCITEMENT.
When pricing listings it's important to create a buzz and excitement about the listing. Much like the accident people should want to slow down to consider this listing as a great price and value. Lets face the facts in these economic times everyone is looking for value. Why do you think every food chain is offering up specials. More food for less money. They are creating a value or a draw to that particular franchise.
Pricing a home properly does a few things for the seller:
1.) It has a much better chance of selling at or near list price because it is priced properly. People recognize value and are willing to pay for something that is "worth it."
2.) Listings get the most attention when they are first listed. Creating a buzz with a properly priced listing may draw more attention and perhaps receive multiple offers thus insuring a higher sales price and better overall contracts.
3.) It alliviates carrying the property for long periods of time while trying to sell. Carrying costs decrease net profits so they should be considered when pricing real estate.
4.) Proper pricing prevents listing from becoming stale on the market. You know those listings that you've seen over and over again and eventually start to assume "there must be something with it."
There are more factors but that should get any home seller ready to price a property to sell. At the end of the day the goal is to sell the property not sit on an overpriced unmarketable listing.
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