Today's challenge for would-be home sellers is to create a perception of value in a depreciating marketplace. No quantity or quality of marketing can achieve this. The only way that this is possible is through a pro-active positioning strategy, in conjunction with the use of the most extensive market exposure available. It is the only way to truly know if a given price point (asking price) is at level that the buyer pool is willing to bear. Logically, home owners who employ limited services brokerages with limited marketing resources, and especially those who choose to go it alone as ‘For Sale by Owners', will never know if they can or ever will realize the highest price possible, in the then given marketplace. How could they possibly know, when they have not been exposed to the entirety of the buyer pool?
The Market Test
Whenever we bring any new property to market, we are effectively ‘testing the market'. A market test is simply (1) exposing a property to the open marketplace at a given price point, (2) quickly gauging the results or lack thereof, and (3) taking corrective action if necessary. A long market test is never in the best interest of the seller because: the length of the market test is inversely proportional to the seller's proceeds! The problem with today's stagnant marketplace is that market tests are simply not being performed efficiently, that is if they are being performed at all. How many times have we seen a property listed for months-on-end without a single price adjustment or with little to no marketing effort? Truth be told, the correct price coupled with an extensive marketing effort will insure that most, if not the entire buyer pool, has been exposed to the property. Subsequently, it will sell. If there are no inquiries, there will never be any showings, and subsequently no offers. A lack of buyer and/or Realtor inquiries is a clear indication that the asking price is not one that the buyer pool is willing to bear. An immediate price adjustment should then be performed, the results reassessed and additional re positionings done if necessary. This cycle should be performed until the buyer pool responds to the additional repositionings. This strategy will always work providing that the most extensive marketing mix possible has been employed. The reason that it will always work is because: In a commodity marketplace, the buyer pool remains relatively constant regardless of market conditions. Only after having closely followed this strategy will a home seller know that they have procured the highest price possible in the then current marketplace. Coincidentally, this methodology works, regardless of price level.