Monday, March 27, 2006

Pricing strategies

Today's comments come straight from the files in our office.

Are you trying to determine a price for your property? If you are a seller, pricing your home in today's changing real estate climate can be a challenge. Do you price it above the last sold comparable property? Maybe a little over? A lot over? Or, maybe your strategy is to offer it at such an attractive price as to hope for multiple offers, thinking that perhaps a "bidding war" will push the price higher.

We are asked all the time about pricing. There are so many factors that go into pricing a property. Time is one important factor. Do you want a fast sale? Or are you willing to wait? Of course, comparable sales of similar properties is key. Remember ... the buyers will be looking at comparable sales when they are formulating their offer.

One thing is certain. If you price your home too high, you/your realtor can spend a good deal of time, energy and money promoting it at the wrong price.

We recommend a pricing strategy meeting with your realtor. Discuss the different scenarios, and take a close, objective look at your competition. What other properties will be the buyers be looking at and considering at the same time that they are looking at your property? You want your property to compare favorably in the buyer's eyes.

And while your property is on the market and unsold, continue to monitor your position in the marketplace. Make sure your property is priced competitively.

What's the right price? In our opinion, it's that price that allows you to accomplish your goals.

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