Establishing
a Pricing Strategy
There
are three major activities crucial to marketing your
property:
- setting
the listing price,
- preparing
your property for sale,
- advertising
and promotion primarily targeting the community
of real estate agents through the Multiple
Listing Service.
Understanding
Market Value
Market-sensitive pricing is paramount! It is the key
to maximum market exposure and, ultimately, a
satisfactory sale.
The
existing pool of prospective buyers determines a property’s
value, based on:
- Location, design, amenities
and condition.
- Availability of comparable
(competing) properties.
- Economic conditions that
affect real property transactions.
Factors
that have little or no influence on the market value of a
house include:
- The price the seller
originally paid for the property.
- The seller’s expected
net proceeds.
- The amount spent on
improvements.
The
impact of accurate pricing:
- Properties priced within
market range generate more showings and
offers, and sell in a shorter period of time.
- Properties priced too
high have a difficult time selling.
The Dangers of Overpricing
An asking
price that is beyond market range can adversely affect
the marketing of a property.
- The property
attracts "lookers" and helps competing
houses look better by comparison.
- If a
property does sell above true market value, it
may not appraise, and the buyers may not be able
to secure a loan.
- The property
may eventually sell below market
value.
Determining
a Market-Sensitive Price
An impartial evaluation of market activity is the
most effective way to estimate a property ’s
potential selling price. A Comparative Market Analysis
considers similar properties that:
Have
sold in the recent past
- This shows us what buyers
in this market have actually paid for properties
similar to yours.
Are
currently on the market
- These are properties that
will be competing with yours for the attention of
available buyers.
Failed
to sell
- Understanding why these
properties did not sell can help avoid
disappointment in the marketing of your property.
If
you want to know the current market value of your house,
please click on the button below and fill out my mail
form for a free Home Market Evaluation.
If
you are serious about selling your home and are looking
for a REALTOR®, please indicate at the end of
the form that you'd like an appointment for a Homeselling
Proposal which will include a complete comparative market
analysis as described above.
Or, contact me now to set up an
appointment.
Next > Preparing
Your Property for Sale
Return to
> Buyer/Seller Tips
James E.
Bohne, Jr., REALTOR®
Mobile: (801) 791-9579
Office: (801) 476-9500
Fax: (801) 476-9581
E-mail: j.e.bohne@att.net |
Crest
Realty Inc.
Equal Housing Opportunity.
Equal Opportunity Employer. |
Copyright © 2005,
James E. Bohne, Jr., All Rights Reserved
|
