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Pricing strategies for a successful sale

August 10, 2009

 

Tom Hicks Founding Partner

Tom Hicks Founding Partner

 

Price your home “right” from the START!

This is not the market to test the waters. Price your home using recent comparable sales (within the last three months if possible) and avoid comparing it to the active competition.

Better price from the start is offense which leads to positive momentum, shorter time on market, more activity, and closer to asking price sale, more control and fewer headaches. An unrealistic price leads to negative momentum which sets you up for playing defense which means longer time on market, price reductions, fewer showings, more frustration, low ending sale price. Be in control and play offense!

Resist the temptation of letting recent positive economy media reports affect your list price

There have been some recent encouraging news reports. We all truly hope they continue and ultimately lead us to a more prosperous future. Hopefully, this may indicate we are approaching the bottom. Nothing out there suggests that you can sell your home for more money just because the nation may be losing jobs at a slower rate or banks have been unloading foreclosures at a higher rate.

Also, homeowners that are having financial issues gambling that prices will be higher in six months are using in a potentially risky and dangerous strategy. Keep your price down and let the reports motivate the buyers.

Don’t be afraid to price you home with zero wiggle room

In years past, many prices would be derived from a formula for instance: what we paid, what we spent, what we want, commission, and wiggle room. Many times in the past, in an appreciating market that actually worked. Sooner or later your home would appreciate to the level of asking price and your home would sell. It wasn’t really logical then, but lucky market conditions made it work.

Take the wiggle room out. Worst case is that you may get some low ball offers that can’t be worked out. That is better than no offers and if your property is truly priced correctly it will sell at your price.

Don’t inflate the price with incentives or offer disincentives

If you can offer cars, vacations, furniture, include a pool or other upgrades at list price then you have the price inflated to reflect these perks and incentives.

Today’s buyers want real value and a DEAL.

They are also very savvy and in the event you are lucky enough to get an offer, they will come in even lower knowing that you are including all of this fluff and extra items included in the price.

You also don’t want to have disincentives like low unappealing selling agent commissions or situations where the buyer finishes the home himself if it can be avoided.

If you follow these pricing tips you should be on your way to getting your home sold in today’s challenging real estate market. For more information on listing your home, please contact Tom Hicks at Atlanta Fine Homes Sotheby’s International Realty at 404.307.4488 or tom.hicks@atlantafinehomes.com.

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