Pricing Strategically

By
Real Estate Agent with Santa Barbara Real Estate 00898298

While the goal is to get the highest possible closing price in a reasonable amount of time listing a property above market value often turns away prospects and decreases the likelihood of a successful sale (see chart A).  An overly aggressive price prevents a property from taking advantage of a key driver in property marketing - timing.  It is well known that a property attracts the most excitement and interest when it's first listed (see Chart B).  If a property is priced above market value, it does not appropriately benefit from the peak interest period.  This may ultimately lead to a sale below market value (see Chart C), or no sale at all. (Click on image above for a larger version)

The initial asking price is a critical aspect of your property marketing plan. Statistics show time and again that homes that are priced properly when first brought to market sell at a higher sales price, oftentimes with better terms and conditions, and in a shorter time frame. "Testing the marketplace" with an inflated over market value asking price is not the best strategy.

 

Posted by

Mark Danforth Lomas

Comments (4)

IRMA Beltran
Century 21 M & M and Associates-Turlock homes Real Estate - Turlock, CA
Your Real Estate Agent 4 Life Always there 4 You!

I totally agree. Pricing the home right is a key factor to getting the best price. I only list homes that will accept my advice on price.  There were 5 homes for sale around my listing mine sold at $207 sq. ft.  while others are selling at $197. My clients was happy as it sold for $13,000. over asking and she new no other had sold for that price.

have a Wonderful Blessed Day!!!

Sep 04, 2015 04:37 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Mark, very valid points!   When you have a frenzied market, maybe a little on the high side will work, but not when it starts slowing down!

Sep 04, 2015 06:31 AM
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Mark,

 

While we always have to keep past sales in mind, buyers are choosing between what is on the market today. If you are overpriced compared to the other houses the buyers are looking at don’t be surprised if they chose a house that is more accurately priced.

Sep 05, 2015 01:55 AM
Mark Lomas
Santa Barbara Real Estate - Santa Barbara, CA
Experience You Can Count On!

Great comments and observations - thanks!

Mark

www.TheRealEstateConcierge.com

www.TheSantaBarbaraRealEstateBlog.com

Sep 05, 2015 03:59 AM