Your price is too dang high!

Your price is too dang high!

Your price is too dang high!

Pricing a property correctly is very important- for a few reasons:

1. Credibility with your client/owner.  If a property is initially priced too high, an owner loses money as it sits vacant and others nearby that are priced correctly are rented out ahead of it.  Initially pricing a property too low, however, will lead to an incredible amount of interest and a quick rental- but you’ll be doing a great disservice to an owner who is able to withstand a bit of vacancy time while netting a higher monthly rent.

2. Credibility among your peers.  We all take note of each others’ prices- when sorting through comparables before initially pricing or adjusting the price of our own properties, when looking to set ourselves or our properties apart from the competition in response to inquiries from tenant prospects, etc.  Those who price their properties well are respected for being in tune with the market- while those who don’t fall a step behind and lose a bit of respect when their prices appear absurd compared with similar ones available at the same time.

3. Credibility with the general public.  Google, trulia, Zillow and a number of other sites will offer up their “right price” for a property, but it may be far different than a list price coming from local sources with a better grasp of the current market.  Knowing their prices- as well as ones included in craigslist scams and elsewhere- makes it all the more important to price a property in line with similar ones.

One must also be sure to go the extra mile in explaining any of a property’s special features or upgrades that may very well justify a price above others that are seemingly comparable.  Credibility with the general public is critically important, as those viewing your listings may be both the tenant prospects of today and the owner/management prospects tomorrow.

Taking everything above into account can make some conversations with owners a bit difficult, but it’s our job to ensure that we always look out for our clients’ interests- even when it means convincing them that a price they have in mind is higher than the current market will bear.

It’s true- in order to maintain credibility with our owners, our peers and the general public, there are times when we have to tell our owners that “Your price is too dang high”.

Your price is too dang high!