This
strategy works best for a garage sale and when selling a
used car or obsolete computer equipment. The buyer makes an
impulsive purchase and
is not concerned about the return on
his investment.
A Real
Estate buyer is much more practical. He's not only
considering your home as a place to live, but also as a
financial investment.
His
purchase will be carefully thought through and his emotions
may be tempered by the restraints of his financial
situation. Homes that are priced
higher than "fair market value" may be beyond what the buyer
can afford or believes is reasonable will simply be ignored.
Competitive Pricing
If wish to sell in
a hurry, you should think carefully about the lowest price
you could except. Based on that figure, add a small amount
of "room for negotiation." (In a
"buyers' market" it's safe to
assume that most buyers will not offer full price for your
home.) Priced "fairly" you can expect viewings and possibly
an offer.
Negotiation begins with an offer - even a low one
Sellers are
reluctant to choose a price too close to their lowest price
for fear of receiving a still lower offer. An offer gives
you and the buyer something to talk about - even a low
offer. Think about this - the buyer chose you're home over
all other homes on the market. He wants YOUR home. Counter
back at the price you want and see what happens. In most
cases the buyer will move up to your price. If not, he
may not have been in a financially able to offer more than
he already has.
The
right price will attract more buyers
Statistics show that a home priced at fair market value will
attract 60% of the buyers shopping that kind of
home.
Homes priced above fair market value discourage prospects
and will reduce traffic to as low as 15%.
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IMPORTANT:
The first criteria buyers
use for their home search is PRICE. Pictures, tours,
location, room sizes, and style all take a back seat to
PRICE. |
The
Initial Surge of Interest
The
first prospects taking an interest in your home will be
those who have been shopping, but have not yet found
something that fits their needs. Yours may be the perfect
home, but priced beyond their means…it may be ignored.
Reluctant Realtors
84% of
all home buyers are working with a Realtor who is picking
properties for them to view. Most Realtors are reluctant to
suggest overpriced homes as they know that it may be
difficult to negotiate down to a price their client can
afford. So, why bother to show the home?
Helping
the Competition
As
Realtors, we appreciate it when a competing home is
overpriced. It tends to make our listing appear to be a
better value and much easier to sell.
 No prize for second place!
In the Real Estate market there is no prize for coming in
second.
Selling your home requires
a First Place finish.
To finish
first, you need to make your home so irresistible that a prospective
buyer will choose yours over all the others. You will need to be
objective when setting your price
and you’ll need to begin looking
at your home’s spaces and condition in the same way
that a buyer
will.
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