Lets Talk pricing
Category CEO's Message
As any Tyson Properties agent will tell you, the first 21 days is the most crucial marketing period for a property. Both agents and buyers are excited to view the property. Today's buyers are sophisticated and have access to information which makes them experts on price and value. They will not buy an overpriced property or even wait for the price to drop. They will simply buy another one.
That is why it is extremely important to price your property correctly.
It is even more important in the buyers 'market in which we currently find ourselves. The most important thing here is a basic law of economics - supply and demand. In a seller's market where homes are scarce, pricing tends to move upward as demand increases. The converse is true for a buyer's market where supply increases and demand and pricing wanes.
That means a seller needs to be competitive in order to sell and make the necessary price changes before the market moves. The stock broker saying "never try to catch a falling knife" holds true in the current market conditions and only sellers prepared to reduce their pricing quickly will be successful.
Other pricing tips:
Believe it or not, there are actually three prices for their home - what you feel it's worth, what the agent feels it's worth and what the market KNOWS it's worth.
As a seller, you may be emotionally tied to a property, but the market isn't and looks realistically at comparative values. So, establish what other homes of similar size and condition have sold for in your neighbourhoods before deciding on a price.
Try not to be influenced by what friends and family say about your home's value as they may not have the market details on hand to make an accurate assessment.
Many sellers increase the price to allow for negotiation. However, this could be your downfall as the higher price could attract the wrong buyers. A well-priced home remains competitive in a softer market and will be more appealing to the right buyers. There are many homes that have remained on the market for over two years simply because their pricing strategy was wrong.
It is crucial for sellers to compare properties sold to theirs and not properties on the market. Often sellers compare their properties to other overpriced properties and not sold properties which gives them a better indication of value.
Create a platform for competition
A well-priced property becomes sought after. An overpriced one may still attract the right buyer but he or she will know that they will probably not be competing for the home and will tender a lower offer.
A well-priced home may attract more than one buyer which will assist in firming the price as buyers are more inclined to offer as close to asking price as they can for fear losing out to competition.
Author: Tyson Properties
