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Challenges of Pricing Your Property To Sell

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Challenges of Pricing Your Property To Sell

Posted at My hometown Ocean City Maryland by Monica McNamara

September 4, 2008

Categorized in: Sellers Corner

Tagged with: condos, homes, positioning in the market, price, sellers

Challenges of Pricing Your Property To Sell

Home sellers are scratching their heads and wondering why their property has not sold. They’ve nibbled away with baby price reductions, but that has not got the job done.

In a lot of markets, the sellers have not caught up to where house prices are, and it is all about pricing. Home sellers have to position the price of their home so it’s enough to get anyone to notice.

I think buyers are basically looking for two things when they buy anything. They want to value the product they are buying, but they also want to feel good about the transaction.

If you buy the same sweater as your friend for $100 less, you are going to think, “Hey, I got a really good deal”. The buyer feels good about what they bought, and they feel smart for having bought it.

A home is no different. Position the price of a home so it’s enough of an attention grabber to, #1 get the repositioned price noticed by the buying public, and #2 so that it makes the buyer feel that they are outsmarting the pack of other home buyers, and getting a good value. The buyer pool of savvy home purchasers is watching the market vey closely, and when they see a new listing at a price point that is clearly an Action Price, those buyers are still willing to make a purchase.

How do you know when to reposition your property? The answer is when potential buyers stop coming through the door. Again, the important key is to position your home so you get the biggest splash possible to get noticed, which will result in getting your home sold sooner, and for a higher price (by using Action Pricing) in this competitive market.

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User Comments

1. RE: Challenges of Pricing Your Property To Sell

Written by: Meri Crandall

September 4, 2008

How low should you go? Some of these people owe so much, that they have no room or they will take a great loss. There are so many properties all over the board, that is very confusing to the buyer.

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2. RE: Challenges of Pricing Your Property To Sell

Written by: Monica McNamara

September 4, 2008

Meri,

From my personal experience, coupled with some of my local demographics, says 14 days MAX! I know that sounds extreme, but in a depreciating market, the longer the days on market, the more we are costing our sellers. We want to create the same sense of fervor and urgency we had in an accelerating market. If we price at what we "think" the "action price' is, we may have a larger buyer pool (the more educated, ready and prepared buyer) on board to pull the trigger.

The buyer pool is the same, they just have to perceive extreme value to be motivated enough to buy.

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