Effective Pricing Strategy
Most all of my clients are concerned about two things: Time and Money. There are a number of data points and factors that I analyze to help inform our clients to maximize their money and minimize their time. I go beyond the typical broker CMA and look at the following categories to create an effective pricing strategy.
COMPARATIVE MARKET ANALYSIS
Every time a home sells on the open market is an opportunity to gain insight to the value of your property. Your home is only worth what someone is willing to pay for it. It is important to look at past real estate price performance of comparable homes to help provide evidence as to what buyers are willing to pay. Although this information is valuable and is a good starting point, it is still only the first step. All homes are unique, especially in older neighborhoods, so while this information is important, it is not the final determiner of price.
Most Internet search engines use $25,000 price brackets which allow buyers to set a maximum price when they search for listings. It doesn’t make sense to price your home at $503,000, because you would likely miss out on the online exposure to buyers who are capping their search at $500,000. In this situation, a list price of $499,900 would ensure the most online visibility.
Once we have looked at the market analysis and have determined the appropriate price bracket, we then look at the current market conditions and active competition. This includes the number of active listings in your neighborhood along with the typical days on market. We then can determine whether we should price your home on the high side or low side of your price bracket to make your home more competitive.
Real estate markets perform differently in the various seasons of the year. We want to look at whether your market is hot or cold, or whether your timing for listing will be in the active season or a slower part of the year. If we are listing your home in a hot market or in the active season, then we may decide that listing towards the high end of your price bracket makes sense. If your market is slowing down or your timing requires listing in a less active part of the year, then we would focus on a price at or below the active competition and price bracket.
Your goals also play an important role. Some sellers place a higher priority on price, others place a priority on a faster sale. You may be relocating to another city or planning to buy another home. At Norhill, I make sure that I understand your priorities and I factor this into our pricing strategy.