CHANGING THE PRICING PHILOSOPHY

The buyers are certainly out there looking, although they seem to be taking their time about writing offers even though the product is perceived as a value. For the sellers, it can be quite frustrating, since they have either reduced their price to get it to where it really needs to be or they have priced the property correctly from the onset.

I’m of the philosophy the it is useless to entertain taking a listing unless it is priced correctly right out of the gate. In my opinion, priced correctly means pricing the property so that it has no competition in the community, which generally makes it the lowest priced property by far.

Although sellers are usually reluctant to entertain that, I try convince them that it is far better, in today’s highly competitive market, to get to the bottom line initially rather than have the property continually go through a series of price reductions. I’ve never understood agents who have multiple reductions on a property, then terminate the listing only to put it right back on the market the same day. Since that information is mainly seen by other agents, you really aren’t fooling too many people.

As Alan Greenspan alluded to this past week, in order for real estate to sell today, it must be not only be perceived as a bargain, but rather an exceptional bargain at that!