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"WIGGLING THE LURE". THREE PRICING STRATEGIES THAT WILL HELP SELL YOUR HOME...

Reblogger D B
Real Estate Agent

Original content by Ken Tracy

I love fishing.  I have since I was a kid.

Selling houses is a lot like fishing. 

     Ken sells homes vs. Ken catches a bass

When you put your home on the market, you are really going fishing. 

You are fishing for a buyer.  And the bigger the fish, the better...

Three pricing strategies that will help sell your home.
 

  1. Wiggling the lure.   I use this strategy with my sellers who have a very interested party looking at the home.  Several positive showings in a row or a second showing. 
    Sometimes a small reduction of $1000 or so will trigger a strike/contract offer.  It is like "wiggling the lure" in front of the fishes nose...

  2. The slow and steady retrieve.   Small price reductions done at regular intervals.  Perhaps 1-2% of the asking price every two weeks or so.  
    Each price reduction causes an email to be sent to thousands of would be buyers searching for a certain criteria (ie. Naperville townhome, Four Lakes condo).  It also insures an overpriced home will eventually find it's proper market and get sold...

  3. The negotiation reduction.   I use this strategy when a home has an offer but the negotiations are going slowly.  Let's say you are asking $400K for your home.  A bidder comes in at $350K.  You counter with $390K, but don't get much response.  My advice would be to reduce the price of your home to $390K immediately.  You have already admitted you would sell it there.  Tell everyone!

    This might cause your reluctant bidder to rethink his position, and accept your offer.  Either way, more buyers will be interested...

Remember, just like fishing, it's not just the bait you use, but the presentation...

Ken

       

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Comments(4)

Jill Schmidt
Aurora, CO

Have you ever seen #2 backfire?  If people notice a pattern of price decreases, they can sit and wait.

Mar 30, 2010 12:02 PM
Lisa Walston
Atlas Property Group and Abbey Church Properties - Greenwood, IN

Thanks for the ideas. Everything will sell eventually at the right price.

Mar 30, 2010 12:16 PM
Lee & Carol Barbour, REALTORS
Murphy and Hayesville, NC; Hiawassee, Blairsville, Blue Ridge GA - Murphy, NC
Mountain Living Team in Murphy NC and North GA

I've never been much of a fisherman, but I really like tip #3.

Mar 30, 2010 12:34 PM
Ken Tracy
Coldwell Banker Residential - Naperville, IL
Helping clients buy and sell since 2005

Hi Donald.  Thanks so much for reblogging my post.

I am glad you liked it!

To answer Jill, they can't sit and wait if the home is fairly priced.  When it gets to the proper price, other buyers will step in and compete...

Thanks again Donald,

Ken

Mar 30, 2010 01:50 PM