PRICING A HOME TO SELL
Posted by V.K. [Mel] Melhado PA on Wednesday, January 17th, 2007 at 8:01am.
Making the decision to sell your home is an enormous step, and now it’s time to price it correctly. It is imperative that a home be priced at market, or you will forever be chasing that market and most likely, it will never sell. In a down or declining market, there is much more inventory to choose from and it becomes critical to price it correctly to achieve the maximum amount of showings possible. With a large inventory, buyers will typically not show any real sense of urgency because they realize that there is much to choose from.
When working with sellers, we as agents must not fall into the trap of pricing a property higher than normal just to get the listing. As David Knox would say, when competing for a listing that another agent has overpriced, there are only two things that you can do. One is to sell your value-added features, stressing that what should really important to the seller is the net from the sale. If a property is overpriced, with continual reductions over the course of the listing period, many times it will not sell and eventually expires. By the time the property finally does sell, the net can be far lower, not to mention the time wasted. The other thing that you can do is to let go and walk away from it. Many it is a far better solution.
Educating our sellers is paramount, because often their expectations about the selling price of their home is based upon unrealistic data, such as what their neighbors sold their homes for or the highest home sale in their community, which they may be using as a benchmark. We have to school them on both market conditions, as well as direct competition. Too often sellers get overly emotionally attached to their price expectations. They must be made to understand that if they truly wish to sell their property, it must be priced to stand apart from the competition, pure and simple.
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V.K. [Mel] Melhado PA
Fine Home Specialist
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Premiere Plus Realty Co.
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