Pricing Your Property To Sell Means Pricing It At Fair Market Value........!!!

By
Real Estate Agent with RE/MAX SOLUTIONS 9695882

How Soon Do You Want To Sell Mr. & Mrs. Seller Is My question....?

  • When you Price Your Home 20% above the fair market  that means  only 1% of buyers.
  • When you price it 15% above fair market value that means only10% of buyers.
  • When you price it at 10% fair market value that means 25% of buyers.
  • When you price it at FAIR MARKET VALUE  this where 50% of the buyers are ,this is where prospects that may actually buy your home are. This is the TARGET OF PRICING YOUR HOME TO SELL.
  • When priced 10% below fair market value that means more buyers 75%.
  • When priced 15% below fair market value those investors love this banana you are going to see about 95% buyers.
  • When priced 20% below fair market value all hell will break loose you will see 99% of buyers.
  • It all depends on how MOTIVATED YOU ARE TO SELL MR. & MRS. SELLER.

Comments (12)

Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Very good Paul.  Very good. 

OUr market is saturated with homes for sale where the sellers haven't a clue about market value. 

Agents simply recommend higher and higher list prices to get the listings and then they just sit and sit.

 

May 31, 2007 12:17 PM
Paul Anyanwu
RE/MAX SOLUTIONS - West Orange, NJ
CRS, SFR, Broker-Salesperson, Sales West Orange,NJ
Thanks Lenn, the problem with those kind of agents trying to get a listing by over pricing the home is that they are going to waste their time, energy and money on that property and buyers are educated more than ever in they will not make a single offer,and the danger is that it very good to list a house right the first time it comes into the market or risk the reduction upon reduction and people will continue to say i wait for it to come down some more and by this time the seller will become frustrated with the agent and finally he will loose the listing to a more savvy agent who knows how to price the home to sell. Thanks for your insight.
May 31, 2007 12:24 PM
Kelli Fronabarger
Bend River Realty Inc. - Bend, OR
Realtor - Bend Oregon

Paul-

Can I print this out to take to my listing appointments? You speak the truth. Thank you : )

May 31, 2007 12:25 PM
Paul Anyanwu
RE/MAX SOLUTIONS - West Orange, NJ
CRS, SFR, Broker-Salesperson, Sales West Orange,NJ
Yes Kelli you got my permission it is a great tool to use when you go for a listing appointment and it works we are all here to help each other. Good luck.
May 31, 2007 12:28 PM
Jim Crawford
Maximum One Executive REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR
In some market it may mean pricing ahead of hte  curve, slightly less than the competition.  Rising inventory and overpriced homes do not mix well.
May 31, 2007 12:31 PM
Paul Anyanwu
RE/MAX SOLUTIONS - West Orange, NJ
CRS, SFR, Broker-Salesperson, Sales West Orange,NJ
I agree Jim, it all depends on what you have where you are and how the market is doing but the fact remains that houses are are priced right the first time get sold very quickly and in some cases it generates multiple offers as well, thanks for your great insights.
May 31, 2007 12:38 PM
Michele Connors
The Overton Group, LLC Pitt & Carteret County - Greenville, NC
Your Eastern North Carolina Realtor

See the banana! Love it! My old BIC use to say theres a monkey for every tree (of course it was a sellers market! ) This gives me a new twist on a old saying of mine! Monkey isnt even visiting unless theres a banana!  Price is EVERYTHING right now.

May 31, 2007 12:39 PM
Amanda Bowser
Equity Plus, Inc. - Smyrna, DE
Mortgage Officer Equity Plus, Inc

Another problem with people pricing their house considerably higher than the market is, it will not appraise high enough. Lenders will not loan more money than the house is worth, even if the sellers and the buyers think it's worth it.

Amanda

May 31, 2007 12:40 PM
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
Realtor®, Springfield Mo Real Estate

Wouldn't it be nice to see all sellers listen to this example?  I learned this years ago, but forgot it.  Thanks for the refresher course.

May 31, 2007 02:56 PM
Paul Anyanwu
RE/MAX SOLUTIONS - West Orange, NJ
CRS, SFR, Broker-Salesperson, Sales West Orange,NJ
My special thanks to Michele, Amanda and Kay for your contributions to this posts,having great people like you is what makes Active Rain a great community to belong.
Jun 01, 2007 03:08 AM
Jana Cole
Independent Exclusive Buyer Agent - Daly City, CA

I specialize in working with only buyers, so I can only imagine what a listing agent goes through, trying to explain this to a seller. When my buyer wants a home that is obviously over-priced, sometimes the seller agent can work with the seller if I bring an actual offer to them that is where the home should have been priced. If they have had no offers, the agent is happy to see me with any kind of offer.

Jun 02, 2007 10:10 AM
Paul Anyanwu
RE/MAX SOLUTIONS - West Orange, NJ
CRS, SFR, Broker-Salesperson, Sales West Orange,NJ
Jana, you made good point that is the reason you should have an idea what the fair market should be to make sure you are not low balling but at the same you do not want your buyer to pay more than they should, thanks for your contribution.
Jun 03, 2007 08:30 AM