SECRET STRATEGY 6: Pin Point Pricing
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“Leo had a 3 bedroom home in a neighborhood of 4 bedroom homes. He also had a 20 year old home with a 20 year old roof and kitchen. We really needed to price the home at the “Market Value” to create alot of demand. We set an aggressive price and posted it online. We monitored the stats and phone calls from Realtors® and Buyers. The demand was high; people were calling asking when this home was going on the market. Due to the increased demand for the property, we put the home on the MLS for $20,000 more. We had 4 offers on Leo’s home in 2 days. Using our Expert Negotiating skills, we drove up the price to $11,000 over the asking price. Leo netted $31,000 over the original “Coming Soon” price.”
Make sure your Expert Realtor® tests the price of your home before you put it in the MLS. Then, price your home within 3% of the market value, and no higher. The vast majority of qualified, motivated buyers come through your home in the first two weeks. If you price your home inappropriately in the beginning, you will miss these buyers. Also, if your house sits on the market for longer than average, which is likely when you start too high, then buyers start to ask “what’s wrong with that home?” This will result in you getting less than market value for your home in the end. Go out and look at your competition before you officially list your home. See how their homes look inside in relation to the price they are asking. If they have been on the market for more than 30 days, they are most likely overpriced. Find out what the pending homes in your area have sold for; your Expert Advisor can do that for you. Next, compare your home to homes that have sold, but only those homes that went pending within 3 months of today’s date. Do not go back more than 3 months. It is okay to go back 6 months, if there is no data at 3 months. The true value of the market is what a buyer was willing to pay for a home last weekend!
