Pricing ahead of the curve

Real Estate Agent with Prudential New Jersey Properties

In my market (northern New Jersey) there are many homes on the market and they are still priced higher than market value. I have been trying to eductae my seller clients in how to price their homes so they will sell in today's market.    Not a easy task.....

I came across an article titled " Pricing ahead of the Curve"-How to get ahead of the market by Jim Remley, Pro Performer Seminars

 I really liked this article and felt it explained the market and situation of sellers and buyers. I decided to use it on a listing appoinment. The customers appreciated my thinking of giving them this information. 

The overall idea is that even if a seller prices their home for the market today (unless it the lowest price)they are outpriced in 30 days if their home does not sell. For example :

Competitor Home A: $368,000
  • Competitor Home B: $349,000
  • Subject Home Today: $345,000
  • Competitor Home C: $345,000
  • Competitor Home D: $333,000
  • Competitor Home E: $329,000

Even though this home is competitvely priced see what happens 30 days later

  • Competitor Home A: Expired
  • Subject Home Today: $345,000
  • Competitor Home B: $339,000 (Reduced Price)
  • Competitor Home C: $335,000 (Reduced Price)
  • Competitor Home D: Sold
  • Competitor Home E: Pending
  • Competitor Home F: $326,000 (New Listing)
  • Competitor Home G: $325,000 (New Listing)
  • Competitor Home H: $319,000 (New Listing)

The subject home was competitely priced but now that new listings are on the market and others are reducing the subject property is now the highest priced listing.

I ended up getting my listing and it was priced quite well. I also used the article to get a $11k price reduction on a similar unit and since reducing there are many more buyers through the home and we have been negotiating an offer.


I hope this helps and if you have anything similar that you use that works please let me know.


Comments (3)

Rob Aubrey
Cottonwood Heights, UT

Good Stuff Laura, thanks for sharing. It is amazing how helpful visuals are.

I had seen in a panel discussion that in a sliding back market you must be ahead of the market if not, you are always chasing the market.

For example

If the comps say $350,000 and they are three months old and the market is going back say 1% per month. The current value is approximately $10,500 less. However if your absorption rate is 10-12 months you need to factor in another 3-4-5 months. In essence 6-8 months slide based on the comps.  

Sep 01, 2007 08:45 AM
Laura Jecker
Prudential New Jersey Properties - Vernon, NJ

Hi Rob,

I am glad you liked the post.  I think education is the most we can do for a customer or client before during and even after a listing or sale.


Sep 01, 2007 08:56 AM
Judi Glamb
Coldwell Banker Hearthside - Hellertown, PA
Associate Broker, ABR

Thanks for sharing - I was thinking of something like this last night.  I've moved to a new office and am going through the stats of the nearby area.  

I need to be firmer with my clients... 

Sep 01, 2007 10:10 AM