Part 2 - Pricing Strategy

By
Real Estate Agent with DFW FINE PROPERTIES 0506509

by Patricia Feager, 9/4/2017

 

PRICING ADVICE

When it comes to other people's money, people take it personally. But that's not the problem, the challenge is having discussions with sellers about rising property costs, economic decline, and the reality check on the appraised value by an Appraiser. A seller who has an unrealistic expectation of what their property is worth needs to understand Appraisers are bound by Federal Government Guidelines. What the sellers don't know can hurt them later, e.g., when agreed upon sales price doesn't match appraised value. Buyers can then opt to walk, pay the difference or negotiate with the seller to adjust his price or split the difference. Sellers need to be educated on seller paid closing costs.

 

PERCEPTION

The perception is, if I make more, I get more. But is that true? If the owner is paying for Title Policy and other closing costs, including Realtor Fees, who stands to gain more and why and how does that compare to costs if property is priced right and not too high? These are discussions I have with my sellers during the listing presentation. 

 

THE GAMBLER

The person who gambles and believes they don't have to sell, so why settle for the first offer may be making a terrible mistake. For every day the house remains in the seller's name, the seller incurs additional costs, e.g., liability, property taxes, home insurance, and maintenance too. When you factor in monthly costs for home ownership, including utilities, does that extra money (if you get more money) really makes a bigger difference in seller's net? Also, there's no guarantee any other buyer wants your house if first buyer walks and if it stay son the market too long, the perception is "what's wrong with it?"

 

TALKING POINTS

It's important for me to have these conversations with my sellers before they list and have a strategy in place to reduce the price of the house after further evaluations on market analysis on additional neighborhood/activity trends on days on the market and sold properties. The purpose is to present realistic information and the role of how supply and demand has a direct impact on pricing. 

 

Patricia's Tip for the Day

©Stay stuck in the mud or swim with the current to get to your destination faster.

 

Posted by

Texas Law requires all license holders to provide the Information about Brokerage Services form to prospective clients.

Real Estate Commission Consumer Protection Notice  

 

 dfw fine properties

 

DFW FINE PROPERTIES

                                        3575 Lone Star Circle, Suite 315
                                        Fort Worth, TX 76117
                                        Office: 817-748-4800/FAX: 817--748-4900

                                         Patricia (Peace without Panic) Feager (Faith without Fear)
                                                        Cell: 469-951-4758

                                                        Email: patricia.feager@gmail.com

 

MBA (University of Dallas)
BA
(Bachelors of Arts & Science)
SECI (Southeastern Career Institute)
Associates (3) (Collge of Lake County)
KU (University of Kansas)

CERTIFICATIONS

CRS (Certified Residential Specialist)
SRES (Certified Senior Residential Specialist)
PSA (Certified Pricing Strategies; Mastering the CMA)
CRS (Certified Military Relocation Specialist)
RENE (Real Estte Negotitions Expert)

"With self-discipline most anything is possible." --- Theodore Roosevelt 

 

 

 

  

Comments (4)

George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Patricia when it comes to selling a house "The Gambler" just like at the casino's ends up on the losing end.  That first offer is many times the best offer.

Sep 13, 2017 09:44 AM
Anna Banana Kruchten CRS, CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Hi Patricia - that is a perfect name for sellers that just don't want to listen to professional agents advice - gambler. There have been times when I've said to a potential seller - so you really want to take that gamble?  What if it doesn't turn out the way you think it will - then what?

Sep 13, 2017 01:40 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I hope home sellers will read your post and learn from it. Thank you for sharing 

Sep 14, 2017 03:28 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Patricia, when sellers get greedy I always tell them here you have just Won $1.2 million dollars and you want to get another $50k? Visualize being at the Roulette Table and let it ride and you lose everything...Endre

Sep 14, 2017 07:02 PM