With foreclosures on the rise and tougher lending practices, inventory is also on the rise! If listings are getting harder to sell, why take any more? How about leverage…how about marketing opportunities… and how about networking opportunities?
So how do you get them sold? I believe if you price them right, you can get them sold. I don’t mean eventually getting to the price, you got to price them right the moment they hit the market. Statistics show that by the third week you should have reached peak interest in the listing. Knowing that, it is key to price the listing right from the start. Below you will find some recent strategies that I am using in the North Georgia Mountain real estate market to assist me in pricing my listings to sell.
1. Know the Market: Price Accordingly.
After you do your research and you know the prices of the homes that have sold in the area, price at or below those prices. Also keep in mind that as Buyer’s are looking for property, they are going to buy the best house for the money. Knowing this, use Hard Price Points when deciding the final number to use. Please keep in mind that these price points could change depending on your market.
The idea of using Hard Price Points is simply to take advantage of two different pricing markets.
For example, let’s say I have a listing priced at $299,900. Elvira Munster over at Adams Family Realty has a Buyer looking to spend up to a maximum of $300K. Well you know we as Realtors only know 0’s and 5’s so that is what we put into our MLS Systems to begin our searches on pricing. So Elvira puts in $250K-$300K for the price into the search criteria. Great, our listing will come up in her search and hopefully she will at least show it. However, Frank Enstien from It’s Alive Realty across town, has on the very same day a Buyer looking for a home also, and they are willing to possibly go up to $350K. So Frank plugs into (no punt intended) his computer a price of $300K–$350K, again because like all of us, ol’ Frank only knows 5’s and 0’s! Well guess what, my $299,900 listing just missed Frank’s possible list of homes to show his clients by $100 measly little ol’ dollars.Now, if I had that listing priced at a hard price point of $300,000 I would have had the advantage of both Buyer’s markets. Remember, a new listing priced to sell is like a fresh loaf of bread just waiting to be squeezed.
2. It’s your business: Remember you are the professional.
Remember, home prices are declining and inventory is rising. Do they really want to sell, or do they just want to go fishing? I explain to my clients that their listing is like a big ol’ pile of cash when I go on my listing appointments. I tell them My goal is to sell your home, with the least amount of convenience to you, all the while netting you the absolute most amount of your money and mine, in the shortest amount of time possible. If they are wanting to price their home out of the market, I might as well go ahead and light a match to that pile of cash!
3. What’s The Motivation: Keep it in mind at all times.
Hopefully you have already gotten the property sold and you don’t even have to worry about this one. But let’s say that you missed a little on the price. I like to have a 30 day price reduction plan already in place. The reason being is that if you go ahead and talk about this during the initial listing appointment, it makes it much easier should you need to do so later. Also, I like to have a Net Sheet ready for the current price and for the scenario where you are forced to obtain a price reduction. This again makes it much easier for your client to see and understand what needs to be done. I have heard of certain statistics that state 2 things:
A: If your home is on the market for more than 30 days and it has been shown more than 10 times and you don’t have an offer, your priced too high!
B: If your home is on the market for more than 30 days and it hasn’t been shown at least 10 times, you are priced too high!
Everyone has a reason for selling. It may be that they have been transferred out of town, an income reduction, an income increase, or a much less fortunate circumstance. What ever it may be, get a deadline and find out what their time table to sell is and keep that in the back of their mind at all times for motivation. I like to call or visit my clients once a week to talk about and go over the weeks activities and discuss how the market has been that particular week. I can tell you that keeping them informed makes for getting the adjustments needed to Get R’ Done much easier.
I am sure that there are many more ways to ensure your home is priced to sell. What do you think? Is your home priced right?