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Once we have narrowed the price range I will outline everything for you about what is currently "happening in the market" and we will finalize the actual listing price.
The "best" listing price:
The best listing price is the price that gets the most qualified buyers looking at the house.
Pricing:
It is useful to consider how buyers look at properties (as you may remember when you bought your property). One of the major considerations is the "price range." For example, a buyer is looking for a two bedroom in district 9 between $850,000 - $950,000. If your place should be in this range but it is not, then you will likely not get the most money for it. And the market will tell you if you are "in" or "not in" the right price range.
BUT! This is where having a really good Realtor is worth the money. If you read the defintion at the "market" link above it talks about the efficient market theory and that "prices on traded assets, e.g., stocks, bonds, or property, already reflect all known information" and it further states "that it is not possible to consistently outperform the market by using any information that the market already knows, except through luck."
A good Realtor, like a good stockbroker, is the first person to know the real estate market "information" mentioned above and as able to use that information, ahead of other participants in the market, to outperform the market on behalf of their clients.
Over pricing:
When you price too high, you put your property in a higher league and are looked at and judged accordingly. If your place should list at $750,000, but you list it at $800,000, the property will be compared against all the other (properly priced) $800,000 listings which will be nicer, bigger or otherwise just better.
Your property will sit on the market while all the other and better $800,000 listings are sold. Finally, after wasted weeks or months even, you start getting lowball offers and/or you reduce the price.
Why would you do this to yourself?
Under pricing:
When a property is underpriced, you will know it because the market will tell you. When you get 12 offers on a place or an offer the first day the property came on the market, you are likely (though not necessarily) under priced.
The good news about under pricing is that you can always counter the offer at a higher price or not accept the "low" offer.
The problem though is that if you price your property at $750,000 and it should be $800,000, the $800,000 people that might be interested in it, may miss it all together as they are looking in the $775,000 - $825,000 range.
Always price properly!
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