- Overpricing is deadly in a declining market. The asking price get
further and further away from reality as time goes on. Usually price
reductions only will bring the price were it should have been originally.
- Right Pricing means:
Accurately determining what the realistic value of the property is today.
Adjusting that value for how long is will take to sell. If it is going to
take 2 months to sell and the values are declining .5% a month then reduce
the value by 1%. Then setting an asking price no higher than 2% above
the expected sales price. But here is the bonus to the seller. If you
do price in right the 1st time you can put that 1% back in the seller pocket
and more.
- What the seller needs to know is "How much of the listing price they
will retain".
For example for the 1st 3 quarters of 2007 single family homes that sold in
the first 15 days they of being put on the market had a listing price
retention of 98.3% *. Home that took 90 days or more to sell had a
listing price retention of 95.4% That's a 2.9% difference!!! So
that statistics show that the quicker a home is sold the more a seller gets
on average. In these statistics there were 3926 closing and of those
696 sold within 15 days or less. So that's almost 20% a pretty high
number. These number are even more convincing when you consider that
the ones that took 90 days or more to sell the 95.4% was from the lower
asking price not the original asking price!! So if doesn't work
it you start high and then reduce to the proper asking price. In the
Right Price scenario you don't worry about needing more negotiating
room. The price looks so good as compared to the competition that the
serious buyers will find the listing too attractive to pass up.
That stats prove this approach works!
- See the worksheet available here and in the office to help you determine
what is the "Right Price for any home.
* This information was taken from the Middlesex County MLS
System.
