• Critical time to price right• Be ready for “fast sale”

Lookers won’t like!$360,000 buyers won’t like the house

nor make an offer.

Buyers won’t look.$300,000 buyers won’t look at houses

above their ‘price range’.

The Wrong Price Attracts The Wrong Buyers

List Price$360,000

List Price$360,000

$300,000Property

$300,000Property

Price High

- Be negotiable?

Price High

- Be negotiable?

Price Right

- Stay firm!

Price Right

- Stay firm!

Two (2) Pricing Strategies

Two (2) Pricing Strategies

Which will likely sell your house- quicker? - for more money?

The Risks of Over Pricing

Reduces sales associate activity Minimizes advertising response Loses interested buyers Attracts the “wrong” buyers Discourages or eliminates offers Can lead to mortgage rejections Helps sell the competition Property gets a ‘reputation” (stale) Later price reductions tend to cause low or delayed offers

Price reductions send the wrong messages!

What is your bottom line?

What price would be so unacceptable that you would ‘walk away’ from such an offer even if it meant you could not sell your property?

While hoping for more, what price would still be acceptable?

What features or characteristics of your home do you thing buyers will feel are lacking or disappointing?

Aspired Price

$ _______________

Walk Away Price

$ _______________

Acceptable Price

$ _______________

What is the highest price you could realistically hope that a prudent buyer would pay for your property?

What special features or characteristics does your home have to warrant this price?

Sold

- Extensive Competition- Minimum Demand- Slow Absorption Rate

- Minimum Competition- Reasonable DemandHigh Absorption Rate

The Absorption Rate

For Sale

People buy by ‘comparison shopping’!

Width indicates the number of interested buyers.

Range of FMV

Fair Market Value

The Pricing Pyramid

The Five (5) Fatal MistakesMost Home Sellers Make When Pricing Their Home

1. Sellers often price their home based on “need” rather than the market.

2. Sellers use the ‘wrong’ properties for comparison when pricing.

3. Sellers build in a ‘negotiating cushion’ and then have no one with which to negotiate.

4. Sellers take advice from ‘well meaning’ but uninformed parties.

5. Sellers allow positive emotions about their property to influence their pricing decisions.

Who Controls the Marketplace?

Factor: Controlled by:

Property Asking Price

Property Condition

Property Marketing

Property Value

Seller

Seller

Listing Agent/Agency

Buyer

High Price

LowPrice

Fast Sale

The 7 Factors That Determine

How Fast A Property Will Sell

1. Time

2. Location

3. Condition

4. Marketing

5. Financing

6. Competition

7. Price

The 7 Factors That Determine

How Fast A Property Will Sell

1. Time

2. Location

3. Condition

4. Marketing

5. Financing

6. Competition

7. Price

Slow to Sell

The Listing Price Determines Buyer Demand

Price as compared to Value

+ 20%

+ 10%

- 10%

- 20%

Market ValueMarket Value

Percentage of buyers who will

view property:

10%

30%

75%

90%

60%60%

Percentages show relationships only, not actual statistics.

CMA: Comparative Market AnalysisMarket Data to Help in Determining the Initial List Price

Researching and Reporting:

Recent Sales of Similar Properties

Competing Properties On Market

‘Expireds’ & ‘Pendings’ - as available

Review of Market Conditions

Sale Price to List Price Ratio

Buyer Tends and Priorities