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No. 1 rule in today's market - Price it Right!!!

By
Real Estate Agent with Cynthia Froid Grop

Recently in the KW Outfront magazine there was a really nice article that i read that just reminded me that the most important thing in this market is price.  

The best thing to do is run your numbers weekly.  I try to call my sellers weekly and let them know what the market is doing.  Sometimes the news is bad, but at least they know and have an agent that is letting them know exactly what the market is doing.  I believe, and have noticed, that by calling my listings weekly or bi-monthly to let them know about the market and the current numbers that they are more open to price reductions or bonuses.  

One thing that i really liked about this article is the statement made by David Norbery states, "If you owned some stock that needed to sell and it was worth $24 a share, but you needed to get at least $30, how much could you sell it for?  He says that once the sellers think about this from that perspective a light goes off and the understand it might be necessary to lower the price in order to make the sale. 

I think that if we as agents are careful and take the time to explain the market and correctly price properties in our area that our listings would sale with less argument. 

This was an excellent article, i will try to see if i can find it somewhere and post a link to it.  

Comments(6)

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Michael Eisenberg
eXp Realty - Bellingham, WA
Bellingham Real Estate Guy
Price it right and it will sell, no if's and or but's, It is just getting sellers to agree to the right price that is not always easy
Jan 22, 2008 12:03 PM
Ulises Romo
Realty One Group - Phoenix, AZ

Price is the key to selling a home quickly. I have had a listing from a family member that was not priced right and it has not sold in a long time. I think with the updates I give them from time to time that it has helped to get them to lower their price and expectations. I felt bad at first about not selling their home quickly, but I realized from co-workers and other people that it was not my fault. Priced wrong in this market was not helping me either.

Good Post.

Jan 22, 2008 12:08 PM
Douglas & Elizabeth Lavery
Prudential Homesale Services Group - Elizabethtown, PA
I must agree with Michael: it's usually easy to price it right, but my toughest job is to convince the seller just how important the Right Price is in selling their home. And getting them to stop the inevitable "seller's logic" that they must add $5000 to the Right Price is always a pitfall.
Jan 22, 2008 12:16 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services
Kyle -- you are correct -- I can't believe how many properties continue to be over-priced -- and seller who continue to "test" the market -- It makes it very frustrating for buyers.
Jan 22, 2008 12:16 PM
Gabe Fitzhugh
GF Homes and Land - Nashville, TN
You Come First!

Do a CMA for your buyers and submit an offer based on that.  There is enough inventory out there, you are going to find a seller that will take your "fair market" offer.

Jan 22, 2008 04:38 PM
Gabe Fitzhugh
GF Homes and Land - Nashville, TN
You Come First!

With more and more sellers pricing their property in line with the market, it is no longer good enough to to have your major focus on pricing.  A homes presentability and marketability is now a huge factor.  It is important to stress to a seller the importance of staging the home and maintaining the property.  That is what will now sell their home vs. other competing homes.

Aug 06, 2009 03:41 AM