Pricing It Right--Objectivity is Crucial

By
Real Estate Agent with www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 228209

Pricing It Right--Objectivity is Crucial

With an incredible supply of homes for sale in today's Buyer's Market, it is crucial to position your home to sell in the shortest amount of time possible, bringing the best price possible.  Begin by looking at your home through the eyes of a potential buyer.

There are five basic factors that ultimately determine whether a home is going to sell, or simply be one of many homes on the market with very few showings and no offers:

Value Factors in Home Selling

Buyers have many choices in today’s market.  In order for a seller to maximize the selling price of a home, the home must be “Showroom Ready” and priced right! PRICE is determined by:  CONDITION, LOCATION, SIZE, and FEATURES.   A home that can rate a score of 10 in CONDITION, LOCATION, SIZE, and FEATURES can be more aggressively priced compared to a home that is deficient in any of the categories.   

A seller CAN control CONDITIONFEATURES, and PRICE.  LOCATION and SIZE are not features that a seller can control.  So, let me show you how being objective in your VALUE rating...

There are currently 25,657 condos, townhomes and single family homes on the market, and over the past three months only 5,176 homes have sold

To add your home to the 5,176 homes that have sold in the last three months, your home must be Valued as a 10 in: CONDITION, LOCATION, SIZE, FEATURES, and that will allow a 10 in PRICE. If your home is not rated a 10 in all these categories, then your PRICE will need to be adjusted for these deficiencies--again, remember location and size cannot be controlled so, adjust accordingly.

The Pond - Where is YOUR home in the pond?

The flow of sales activity in any real estate market is comprised of three categories of the homes that are currently on the market:

1.  Homes that FLOW.  Homes that are considered to be the best Value and Price flow into the market, leave the market SOLD in less than 45 days.

2.  Homes that SHOW.  Homes that are deficient in Value and/or Price may be shown, but they are not receiving any offers.  Adjustments must be made in the areas that you DO have control - PRICE, Condition or Features in order to get the listing sold.
3.  Homes that become the STAGNANT MASS.   Homes that are greatly deficient in  both Value and Price do not even attract showings.  There is  virtually no activity, and these listings will simply never sell.

Ask yourself where you want to position your house in this competitive Buyer’s market. Remember, any deficiency in the five categories of:  CONDITION, LOCATION, SIZE, FEATURES or PRICE will remove your listing from the “Flow” of the market and place it in the “Show but no offer” category or worst yet, in the “Stagnant Mass” with no showings.

Here's a recent Market Absorption Trend which is another evaluation tool to use when listing your property:

Market Absorption Trend Foxcroft Charlotte NC

If positioned properly, your home will “Flow” right off the market!  It will attract a buyer.

 

The Pond graphic courtesy of Zan Monroe, CRS Senior Instructor and NINJA coach:  www.ZanMonroe.com

close

Re-Blogged 5 times:

Re-Blogged By Re-Blogged At
  1. Liz Loadholt 01/31/2010 04:11 AM
  2. Barbara Martino-Sliva, Top Producer 01/31/2010 09:17 AM
  3. Don Rogers 01/31/2010 10:36 AM
  4. Gail Robinson 01/31/2010 01:16 PM
  5. Gabe Sanders 01/31/2010 10:34 PM
  6. Renée Donohue~Home Photography 02/01/2010 12:12 AM
Topic:
Home Selling
Location:
North Carolina Mecklenburg County Charlotte
Groups:
Realtors®
The Lounge at Active Rain
Posts to Localism
Local Expert
Diary of a Realtor
Tags:
seller advice
sellers tips
charlotte nc sellers

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
942,052
Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

Very informative post.  This is amazing work, and very well done.  Your momma should be proud!!  I bookmarked and will revisit often.  Thanks. 

Jan 31, 2010 01:21 PM #19
Rainer
308,695
Nancy Murray
Keller Williams Clients Choice Realty, Colorado Springs, CO - Colorado Springs, CO
Your NICE Real Estate Agent in Colorado Springs

Debe, You do such an incredible job on your blogs.  Thank you so much for sharing your knowledge with everyone.  I'm anxious to get my Facebook page looking as good as yours!

Nancy

Jan 31, 2010 02:41 PM #20
Rainmaker
3,266,239
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Explaining to sellers that the many many choices are what demands that the home is taken to the best point it can go....the shiniest penny.... at the best price and it will be picked up quickly !

Jan 31, 2010 09:48 PM #21
Rainmaker
4,797,386
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Debe, very well presented.  I've used this flow analogy before, but I like breaking down the pricing into simple easy to understand categories.

Jan 31, 2010 10:32 PM #22
Rainmaker
1,725,723
Sam Miller
RE/MAX Stars Realty - Howard, OH
Knox County Ohio Real Estate Specialist

Love the "Flow" graphic and the idea behind it.

Jan 31, 2010 10:47 PM #23
Rainmaker
558,018
Cherise Selley
Selley Group Real Estate, LLC - Colorado Springs, CO
Colorado Springs Realtor

Debe...outstanding about how you simplified this for the buyer and the seller...location still remains key...good points for the seller and understanding stagnant inventory...well-done...Cherise

Feb 01, 2010 12:10 AM #24
Ambassador
1,509,412
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

I have flagged this one for feature!  I have been encouraging my buyers to fish VERY deep in the pond since we turned into a seller's market in April/May!

Feb 01, 2010 12:11 AM #25
Rainmaker
1,542,700
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Debe, excellent analogy on pricing. It's true and I wish sellers would take our advice. I also recently did a post on the 'Absorption Rate' and tried to throw some humor into the mix.  Can't have all those boring graphs and numbers only.  You've done a great job.

Feb 01, 2010 12:15 AM #26
Ambassador
699,999
Lee & Pamela St. Peter
Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522 - Raleigh, NC
Making Connections to Success in Real Estate

Excellent post Debe, and so insightful.  You hit the nail on the head in everyone's market!!  Love your graphic - there's no misunderstanding the value of pricing!

Feb 01, 2010 02:23 AM #27
Rainer
20,048
Robin Evans
Coldwell Banker Advantage - Cary, NC
Building relationships while getting results.

Debe, Excellent information and beautiful presentation.  

Feb 01, 2010 04:21 AM #28
Ambassador
3,347,709
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Hi Everyone!  Thank you so much for your comments!  I have been a bit slammed since I posted this--sorry I had to DASH! 

The pond graphic is very powerful in a presentation!  Taking them to preview the homes is quite helpful too--it truly opens up the eyes of the sellers.

Have a wonderful day everyone!

Feb 01, 2010 05:34 AM #29
Rainer
46,710
Yuno Marioni
Bothell, WA
- Your Home, My Goal -

Excellent post, Debe as always!  I love the pond analysis.  Thanks! 

Feb 01, 2010 12:21 PM #30
Ambassador
3,013,890
Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Congratulations on being a featured member of ActiveRain! Well deserved and great choice!

Feb 01, 2010 02:05 PM #31
Ambassador
1,723,119
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Debe,

Excellent post and not only for the consumers but for real estate professionals. Very simple way to present an important point.

Pricing right is critically important, and you show why.

Feb 01, 2010 02:24 PM #32
Ambassador
2,758,551
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

 

Excellent post Debe. I too like the pond graphics...

Helping you help others live their American dream...

 

Feb 01, 2010 07:17 PM #33
Rainer
112,731
Lisa Schlitz
Home Run Real Estate, Inc. - Wellington, FL
Realtor - Wellington, Florida Homes 561-214-3216

Love the pond graphis-great job as usual!

Feb 01, 2010 09:57 PM #34
Rainmaker
1,518,342
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

Great info. I do like the graphic. Famous last words..in my opinion I am being objective!

Feb 01, 2010 11:16 PM #35
Ambassador
1,191,924
Ellie McIntire
Ellicott City Clarksville Howard County Maryland Real Estate - Ellicott City, MD
Luxury service in Howard County & Catonsville

You will not get a second chance to make a good first impression. This includes price and condition.

Great post. Love the chart.

Feb 02, 2010 01:14 AM #36
Rainmaker
508,620
Michele Connors
The Overton Group, LLC Pitt & Carteret County - Greenville, NC
Your Eastern North Carolina Realtor

You get a gold star on this one! I think it is an excellent visual and learning tool for seller to PRICE IT RIGHT! chasing the market only gets you to the bottom of the "pond" !

Feb 02, 2010 02:16 AM #37
Ambassador
727,117
Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

Ha ! priceless guide for listing agents !! Well done Big Sis !!!!

Feb 02, 2010 01:09 PM #38
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
3,347,709

Debe Maxwell, CRS

Charlotte Homes for Sale - Charlotte Neighborhoods
Have questions about Charlotte? How may we help?
*
*
*
*
Spam prevention

Additional Information