5 Things Every Shawnee KS Home Seller Needs to Know About Price Reductions
1. Pricing the property properly when the home first goes on the market is key to maximizing the return the seller will realize and minimizing the hassles of having their home on the market.
Before getting into real estate I would have subscribed to that common seller belief that you should price high because you can always come down. It didn't take long for me to be in the business (and selling my own home) to realize that is exactly the wrong approach. 
Pricing your home competitively will generate the most activity from agents and buyers. Buyers are on the internet checking out homes and values. They are very knowledgeable about values. Though buyers always want the best deal (just like sellers), they are quick to recognize value when it appears. A new fresh listing is always in the best negotiating position because buyers who want the home may be afraid they will lose out.
2. Pricing the property too high may make it necessary to drop the price below market value to compete with new, well priced listings.
It's not a good feeling to sell a home below market value just because it's been sitting on the market at too high of a price. When properties sit on the market day after day, buyers begin to wonder what's wrong with the home. They begin to mentally tick off dollars just because the days on market have risen. They may feel like they have the upper hand in negotiations because the seller is getting tired of having the home on the market. It may even become necessary to reduce the property below actual market value just to get the home sold.
3. Pricing the home at competitive market value initially is very important The value of the property is the price at which a buyer and seller agree to sell.
There are several misconceptions about value.
Value is not what you paid
Value is not what you need
Value is not what you want
Value is not what your neighbor says
Value is not what another agent says
Value is not what it would cost to rebuild today.
Value is not what the county has as its record of value
Value is not what the upgrades cost
Value is simply what buyers determine they are willing to pay. Buyers educate themselves about value by looking at other comparable properties and compare your property to what has recently sold in your area.
4. Time on the market works against you.
Positioning your property competitively is the best way to maximize the return. Historically, homes that sell in the first 4 weeks sell within a percent or two of asking price. If a property is on the market more than 24 weeks, the home may sell significantly less. The time frames vary, depending upon the market activity. What does not vary is that time on the market works against you. Not only do you get a lower offer, but once a price has been agreed upon, the buyer may feel bolder in renegotiating for inspection items.
A seller will have the most potential market activity when a listing is new and fresh. The reason for that is that buyers who have looked at all the other properties and haven't found what they want will notice a new listing and take a look. If the pricing doesn't meet the value test on the internet, a seller will not get the buyers in the door for a showing. Starting too highand dropping the price misses the excitement and fails to generate strong showing activity.
5. What sells is when a home is priced right for the condition it is in.
Even in a strong buyer's market, a home that is priced right and in great conditon can be in a seller's market. That doesn't mean that sellers always have to upgrade their property in order to sell. It may mean that in order to sell at the price they desire to sell at, that they must make improvements to the condition. If condition is poor, sellers should expect that buyers will reduce the value in their minds and the seller may need to reduce the price or improve the condition or both. Price and condition must be consistent in the minds of the buyers and sellers need to know whether their target market is the investor market or the end buyer, and what each segment expects to find in a property.
Buyers who are looking for great deals often look at homes that have had recent price reductions. To find homes with Recent Price Drops
Shawnee Homes with Price Reductions
Olathe Homes with Price Reductions
Lenexa Homes with Price Reductions
Overland Park Homes with Price Reductions
Sellers who are considering selling their Shawnee KS home will do well to remember these 5 things about pricing their homes appropriately so that they can maximize their selling price. For assistance in selling your Shawnee home or your home in one of our neighboring communities, call me at 913-233-9547 or email me at Lea@LeaDeo.com.
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