critical time to price right be ready for “ fast sale ”
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Critical time to price right Be ready for “ fast sale ”. The Wrong Price Attracts The Wrong Buyers. $300,000 Property. List Price $360,000. Buyers won ’ t look. $300,000 buyers won ’ t look at houses above their ‘ price range ’. Lookers won ’ t like! - PowerPoint PPT PresentationTRANSCRIPT
• Critical time to price right• Be ready for “fast sale”
Lookers won’t like!$360,000 buyers won’t like the house
nor make an offer.
Buyers won’t look.$300,000 buyers won’t look at houses
above their ‘price range’.
The Wrong Price Attracts The Wrong Buyers
List Price$360,000
List Price$360,000
$300,000Property
$300,000Property
Price High
- Be negotiable?
Price High
- Be negotiable?
Price Right
- Stay firm!
Price Right
- Stay firm!
Two (2) Pricing Strategies
Two (2) Pricing Strategies
Which will likely sell your house- quicker? - for more money?
The Risks of Over Pricing
Reduces sales associate activity Minimizes advertising response Loses interested buyers Attracts the “wrong” buyers Discourages or eliminates offers Can lead to mortgage rejections Helps sell the competition Property gets a ‘reputation” (stale) Later price reductions tend to cause low or delayed offers
Price reductions send the wrong messages!
What is your bottom line?
What price would be so unacceptable that you would ‘walk away’ from such an offer even if it meant you could not sell your property?
While hoping for more, what price would still be acceptable?
What features or characteristics of your home do you thing buyers will feel are lacking or disappointing?
Aspired Price
$ _______________
Walk Away Price
$ _______________
Acceptable Price
$ _______________
What is the highest price you could realistically hope that a prudent buyer would pay for your property?
What special features or characteristics does your home have to warrant this price?
Sold
- Extensive Competition- Minimum Demand- Slow Absorption Rate
- Minimum Competition- Reasonable DemandHigh Absorption Rate
The Absorption Rate
For Sale
People buy by ‘comparison shopping’!
Width indicates the number of interested buyers.
Range of FMV
Fair Market Value
The Pricing Pyramid
The Five (5) Fatal MistakesMost Home Sellers Make When Pricing Their Home
1. Sellers often price their home based on “need” rather than the market.
2. Sellers use the ‘wrong’ properties for comparison when pricing.
3. Sellers build in a ‘negotiating cushion’ and then have no one with which to negotiate.
4. Sellers take advice from ‘well meaning’ but uninformed parties.
5. Sellers allow positive emotions about their property to influence their pricing decisions.
Who Controls the Marketplace?
Factor: Controlled by:
Property Asking Price
Property Condition
Property Marketing
Property Value
Seller
Seller
Listing Agent/Agency
Buyer
High Price
LowPrice
Fast Sale
The 7 Factors That Determine
How Fast A Property Will Sell
1. Time
2. Location
3. Condition
4. Marketing
5. Financing
6. Competition
7. Price
The 7 Factors That Determine
How Fast A Property Will Sell
1. Time
2. Location
3. Condition
4. Marketing
5. Financing
6. Competition
7. Price
Slow to Sell
The Listing Price Determines Buyer Demand
Price as compared to Value
+ 20%
+ 10%
- 10%
- 20%
Market ValueMarket Value
Percentage of buyers who will
view property:
10%
30%
75%
90%
60%60%
Percentages show relationships only, not actual statistics.
CMA: Comparative Market AnalysisMarket Data to Help in Determining the Initial List Price
Researching and Reporting:
Recent Sales of Similar Properties
Competing Properties On Market
‘Expireds’ & ‘Pendings’ - as available
Review of Market Conditions
Sale Price to List Price Ratio
Buyer Tends and Priorities