PRICING GUIDELINES
Pricing your property competitively from the start
will generate the most activity among brokers and
buyers. Starting too high and dropping the price
later misses the excitement and fails to attract
offer.
Important:
To attract buyers you need to expose your property
professionally and create value in the eyes of the
buyer! How do you create value?
- What you paid for your property does not affect
its value.
- The amount of money you need to get out of the
sale of your property does not affect its value.
- What you think it should be worth has no affect on
value.
- What other people think your property is worth
does not affect its value.
- An appraisal indicates what your property was
worth three to six months ago, not what it is worth on the open market
today.
The value of your property is determined by what a
ready willing and able buyer will pay for it in the
open market, which will be based upon the value of
other recently closed sales:
BUYERS DETERMINE VALUE!
BENEFITS OF PROPER PRICING:
FASTER SALE:
The proper price gets a faster sale, which means
you save on mortgage payments, insurance, and other
carrying costs.
LESS INCONVENIENCE:
As you may know, it takes a lot of time and
energy to prepare your home for showings, keep the
property clean, make arrangements for children, and
generally alter your lifestyle. Proper pricing
shortens market time.
INCREASED SALESPERSON RESPONSE:
When salespeople are excited about a property
and its price, they make special efforts to contact
all their potential buyers and show the property
whenever possible.
EXPOSURE TO MORE PROSPECTS:
Pricing at market value will open your home up
to more people who can afford it.
BETTER RESPONSE FROM ADVERTISING:
Buyer inquiry calls are more readily converted
into showing appointments when the price is not a
deterrent.
HIGHER OFFERS:
When a property is priced right, buyers are much
less likely to make a low offer, for fear of losing
out on a great value.
MORE MONEY TO SELLERS:
When a property is priced right, the excitement
of the market produces a higher sales price in less
time. You net more due to the higher sales price and
lower carrying costs.
DRAWBACKS OF OVERPRICING:
REDUCED ACTIVITY:
Agents won't show the property if they feel it
is priced too high.
LOWER ADVERTISING RESPONSE:
Buyer excitement will be with other properties
that offer better value.
LOSS OF INTERESTED BUYERS:
The property will seem inferior in amenities to
other properties in the same price range that are
correctly priced.
ATTRACTS THE WRONG PROSPECTS:
Serious buyers will feel that they should be
getting more for their money.
HELPS THE COMPETITION:
The high price makes the others look like a good
deal.
ELIMINATES OFFERS:
Since a fair priced offer will be lower than
asking price and may insult the seller, many buyers
will just move on to another property.
LOWER NET PROCEEDS:
Most of the time an overpriced property will
eventually end up selling for less than if it had
been properly priced to begin with, not to mention
the extra carrying costs.
"My pro-active sales
approach is setting me apart from most realtors.
Before you sign a contract make sure you learn about
my sales techniques. Only
qualified buyers that value your property will be
presented to you."
