Sell your home for Top Dollar in any market - Stage 5
Get this right, and buyers will fight over your home. Get this wrong and you risk leaving money on the table or having no buying interest at all.
PRICE - POINT #15
There are 4 inputs that determine where your property should be priced.
1. Recent Sales – what buyers have been doing already
2. Your competition – what properties are for sale in your area now
3. The seller’s needs
4. The market cycle – are we in a bull market, sideways market or bear market
Take Away : ensure you consider all 4 inputs, or you could undermine your entire marketing campaign before you even begin.
PRICE - POINT #16
Lead Balloon Marketing - avoid this mistake
Some sellers think they should set their price really high. They soon realise that buyers are not interested, so their price has to drop….and drop….and drop….like a lead balloon. Eventually the price reaches the correct market price, but now the buyers are wondering if there is something wrong with the home. Lead balloon marketing is one of the most damaging mistakes a seller can make.
Take Away : avoid this costly mistake. Just don’t do it!
PRICE - POINT #17
Offers Over - a good "Plan B"
Most times you would better served with a price range and an agent who is skilled in negotiating. However, “Offers Over” is a good Plan B if the price range doesn’t work.
If you are going to do an “Offers Over” pricing strategy, do not put the price just under a round number. For example, do not say “Offers over $595,000”. Why? Because most buyers will think you want $600,000 and will start to discount the property down to $570,000 in their minds. Instead, put the price above the round number – for example “Offers over $615,000”. This does not provide a round number for the buyers to discount from.
Take Away : Offers Over can work well, however there is often a better way.
PRICE - POINT #18
Price Range - requires some skill
Example : $695,000 to $745,000
A price range can be an outstanding option in the hands of a skilled negotiator. The buyers don’t like a price range. It makes the buyers uncomfortable as they don’t have a solid price to work from. This uncertainty helps the negotiator (your agent) to influence where the price may go.
If the agent has protected the price, and you have more than one buyer, get ready for an outstanding sale! Often the price will go above the top of the range.
Take Away : Price Ranges are frequently the preferred method of pricing for many homes. Use this as Plan A and then drop back to Offers Over as a solid Plan B if requried.
PRICE POINT #19
Contact Agent - buyers don't like it
For most property sales (not all, but most), “Contact Agent” and “Price by Negotiation” are mistakes.
Buyers don’t like having to all the real estate agent to ask the price. They are confused as to why the seller’s don’t have an asking price, and often the buyers will ignore the property all together.
The major real estate web sites track how many times buyers click on a property. Properties with no listed price almost always get less views than properties with an advertised price.
Take Away : For most situations, avoid this method of pricing if you want 100% of the buyers to consider your property.