We're heading toward a market shift, so pricing a home properly is going to be a more important skill now that it has been in the last 10 years. How do you help your sellers do this?
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I wanted to give you some advice on helping your sellers choose the right price for their homes.
As we go into this shifting market, pricing a home is going to be a more in-demand skill than it has been in the last 10 years. As we come into the fourth quarter of 2016, we’re starting to see that the homes that aren't priced exactly right are sitting on the market. In fact, a lot of them end up having multiple price reductions and selling for less than they probably should have right out of the gate.
When you're helping your seller choose the right price, here's the simple formula for me: I want to get real about the condition of the property I'm about to bring to market. Is it a two or is it a 10? From there, I want to get real about the condition of the other properties on the market. Are they nicer, or is your seller's property nicer?
Once I've identified that, then I'm going to look at the competition and the way they are priced. I intend to be the best, highest quality home on the market for the price. What I'm saying is that if you're the best value on the market, you'll always be the first to sell.
As somebody who has sold dozens of properties of my own and thousands for other people, I can tell you unequivocally that the market does not let properties sell too cheaply. Here's what I mean by that–if you think a property is worth somewhere between $450,000 and $500,000, I'm listing it at $450,000 every time. If I list at that price and it was supposed to be $500,000, I'm going to get multiple offers in a short time and it's going to sell for $500,000 or maybe even more.
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The free market will always help you find the right price.
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That's the beauty of the free market system; the market always helps you get the pricing right. It also punishes you when you get greedy on the front end.
If the property is worth $500,000 and you price it at $510,000, the property begins to stagnate on the market, you have a low number of showings, and buyers start to wonder what's wrong with the property. Other agents may not show it, and it eventually sells for far less than it should.
Do the right thing by helping your sellers pick the right price out of the gate and get the home sold quickly. If you have any more questions about pricing homes or I can help you in any way with your real estate career, give me a call or send me an email. I'd love to help you out!
