Go Where The Money Is....Price to be Found!

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Real Estate Broker/Owner with State Wide Realty Co.

Go Where The Money Is....Price to be FOUND!

Recently, I read an article in the Realtor magazine that reflected thoughts I had already read here in the Rain.  The article was about pricing a home to sell. One of the points being made was that homes shouldn't be priced at $199,000 because these properties were not being seen by buyers searching in the $200,000-$250,000 price range. I have to respectfully disagree with this concept. Yes, I'm sure there might be a few neighborhoods where this theory might apply but I don't think it's in my neck of the woods in Farmville VA.

I understand that most buyers are searching in price ranges on the computer these days but I have found that most of the home buyers in Farmville VA are currently in the $100,000 to $200,000 range. So why not price where the money is. If the seller is willing to take ANYTHING in that range, put them there...those in the suggested $200,000 - $250,000 range will probably end up there eventually but we do our clients a disservice not to price where the buyers are searching.

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Re-Blogged By Re-Blogged At
  1. Karen Kruschka 01/18/2011 12:52 AM
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Rainer
103,190
Keith Vermilyea
Home Buyers Marketing II, Inc. - Boise, ID

Larry, you raise an important point in this ongoing debate and that is we must consider the market we are selling in because real estate markets are very localized, thanks for the post. 

Jan 18, 2011 12:39 AM #1
Ambassador
1,554,356
Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Larry  Your post recognizes the wide variance in markets and that "one size fits all" marketing is erroneous

Jan 18, 2011 12:50 AM #2
Rainmaker
4,556,950
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Larry, there are two sides to look at this!    I had two homes last summer price at $399,900, that had LOTS of square footage and one had a 4 car garage.     I THOUGHT these listings would get more traffic if I price them both at $400,000, and they did.     If, on the other hand, these listings would have been priced on the higher side, $399,900 would have been the best.     It just depends....

Jan 18, 2011 05:16 AM #3
Ambassador
538,829
Pam Dent
Gayle Harvey Real Estate, Inc. - Charlottesville, VA
REALTOR® - Charlottesville Virginia Homes / Horse

Larry - You have an excellent point.  It is good to look at the absorption rates in both price ranges to see where it would be best to price the home.

Jan 18, 2011 03:52 PM #4
Rainmaker
861,575
Gabrielle Kamahele Rhind
KGC Properties LLC, Tucson Property Management & Real Estate - Tucson, AZ
Broker/Owner

GOOD MORNING LARRY!  All Buyers and agents search different -- I often have buyers that start their range at $10,000 and go up to their price point - and other have a $5,000 range limit.  Good points here!-- G

Jan 18, 2011 10:18 PM #5
Rainmaker
6,157,812
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Very good advice for home sellers and their agents. Thanks for sharing!

 The colors of winter in Montgomery County, MD. Life is good!

Jan 18, 2011 10:28 PM #6
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Larry Atkins

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