Why Is It So Important To Set The Price Right The First Time?


When it is time to sell your home, the list price is the most important factor that will affect the resultant sales price and the time it takes to sell your property.  To save you time and money, you need to price it right the first time.  Advantage Real Estate can assist you in selling your property for the highest possible price in the least amount of time.  There are many benefits to proper pricing, including:

  • Faster Sale: The proper price gets a faster sale, which means you save on mortgage payments, insurance, and other carrying costs.

  • Less Inconvenience: 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.

It is important to remember that there are only 2 reasons why a property doesn’t sell:

Marketing and Pricing.

Over 90% of the time, pricing is the issue. Setting a reasonable and well supported list price puts the seller in an Advantageous position.

 

 

 

 

Drawbacks of Pricing too High

When your property is priced near it’s market value it will be marketed to more people who can afford it.   Alternatively, there are numerous drawbacks if the price is set too high.  Drawbacks include:

  • Reduced Activity: Agents will not 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 other listings 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.

  • Causes Appraisal Problems: Appraisers must base their value on what comparable properties have sold for.

  • 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.


Generate a strong initial response!

When properties are initially placed on the market, they typically generate an immediate initial interest and response from the marketplace.  This factor increases the importance of setting an appropriate list price and quickly implementing a comprehensive marketing plan.  A new listing will attract the scrutiny of sellers and the brokerage community.  There is often pent-up demand with buyers standing by waiting for the right property to come on the market.  A reasonably priced property will oftentimes sell within the first 90 days.

Properties priced too high run the risk of being labeled as over-priced which can have a lasting adverse affect on the marketability of the property.  If the price is too high to begin with, you may scare off some potential buyers early on.  The perception may be generated that your listing is a bit stale, which can result in fewer showings.  A reduction in the asking price would then be necessary to regenerate interest in the property.

If your property is priced too low, it may sell very quickly, but you may be short-changing yourself.  Therefore, it is very important to obtain complete sales data and competent analysis so that your property does not sell at a price level which is below market value.

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!!  Remember:

  • What you paid for your property does not effect its value.

  • The amount of money you need to get out of the sale of your property does not effect its value.

  • What you think it should be worth has no effect on value.

  • What another real estate agent says your property is worth does not effect its value.
  • An appraisal does not always indicate what your property is worth on the open market.


Do You Want To Sell Your Home Fast For The Highest Possible Price?

Call Advantage Real Estate or Use Our Response Form!

970 / 926-1155

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