Pricing vs. pricing strategy: How often have we all discussed how important pricing is when it comes to listing and selling homes? There's no question that under any set of market conditions, the process of arriving at an appropriate list price is critical. However, not all home sellers want or need to sell their home instantly, which brings into focus the difference between simply pricing a home vs. having a specific pricing strategy.
The process of "pricing" a home is common in our business, but in my 29 years' experience I've learned that one size does not fit all. Clearly, some sellers do need to sell quickly and there's an appropriate strategy for that. There may also be some value in not simply pricing a property with a cookie-cutter approach, but developing a pricing "strategy" that takes into account market conditions as well as the seller's specific objectives.
A lot of brokers who list REO's already do this routinely; the bank has a hightened sense of urgency to sell the property and, many times, wants to sell the property quickly. As a result, they may list the property at a price that they hope will accomplish that. What I think many of us may be overlooking is that the process works the other way, too. Take, for example, the seller who has a well-thought-out reason for not wanting to sell in 5 minutes: What is the appropriate pricing strategy for them? Don't most CMA's result in a suggested price range? Where in that range is appropriate for this particular seller?
This is obviously not about the seller who is in denial about their $300,000 home being worth $400,000; there is no effective strategy for that. It just seems to me that with something as important as pricing is to our clients' success, we should be developing pricing strategies that are as unique and varied as the homes and the clients we represent.
If you're interested in selling a Sacramento home, let's talk about the most effective pricing strategy for you and get your home sold!
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